The largest in the history of one order... 60GWh size
Branches within the year… preemption
Prediction of 'large orders' from domestic partners
SK On placed an order for equipment and facilities worth KRW 6 trillion to expand battery factories for electric vehicles in Hungary and China.
The new plant alone has a production capacity of 60 GWh. It is the largest single order in history. Large-scale orders are expected from domestic process equipment manufacturers that have worked closely with SK On.
According to industry sources on the 13th, SK On will build new plants with an annual capacity of 30GWh each in Ivancsa, Hungary (plant 3) and Yancheng, China (plant 4). SK On's budget for these new factories is KRW 6 trillion, and equipment orders alone are expected to reach KRW 5 to 6 trillion, after considering subsidies from these countries and various tax benefits. The company selection is carried out sequentially depending on the stage of the process line, starting with logistics and formation equipment, then mixing, pole plate, and assembly. It is reported that SK On has already completed consultations with some companies, such as equipment purchase plans, supply and construction time, etc.
SK On aims to start operation within this year, and complete the selection of equipment manufacturers in these fields by next month at the latest.
An industry official said, "As the order from SK On is the largest ever, delays in the supply of raw materials and transportation of parts are expected; thus, the process from the announcement of the selection of those companies to the final contract will proceeds swiftly. The selection of suppliers includes some equipment manufacturers in China and Europe, but domestic equipment manufacturers that have cooperated with SK on battery plant construction will have an advantage.”
SK On plans to select two or more companies in each of the process fields that are largely classified into electrode manufacturing, assembly process, chemical conversion process, and mixing process. This is a large-scale facility order, and it is a preparation for solving possible problems that may arise during the facility construction process.
An SK On official confirmed and said, "The expansion of production lines in China and Hungary is rapidly progressing in order to meet the number of orders from many customers."
SK On is currently operating electric vehicle battery factories in three locations in China: Changzhou (7GWh), Yancheng (10GWh), and Huizhou (10GWh). If the 4th factory in Yancheng is combined, production capacity in China will increase to 57GWh per year. In addition, when the Ivancsa 3 plant is completed following the first and second plants in Komarom in Hungary (total of 17.3GWh), annual production in Europe will increase to 47GWh.
SK On's existing equipment partners are Yunsung F&C, PNT, Youil Energy Tech, Wonik PNE, Woowon Technology, mPlus, and NS.
By Staff Reporter Tae-jun Park (gaius@etnews.com)