On the 6th, BlueOval SK, a joint venture between SK On and Ford, began to construct two new battery plants in Glendale, Kentucky, USA. The total investment amount is KRW 8 trillion. About 400 people attended the event, including SK On Executive Vice Chairman Jae-won Chey, SK On CEO Dong-seop Ji, Blue Oval SK CEO Chang-woo Hahm, Ford Global Workforce Development Director Liliana Ramirez, and Kentucky Governor Andy Beshear.
SK On plans to expand its current US production capacity by more than eight folds in order to catch up with China's CATL, Korea’s LG Energy Solution, and Japan's Panasonic in the EV battery market. CATL, LG Energy Solution, and Panasonic are supplying EV batteries to Tesla, maintaining their top 3 positions. SK On is producing 22 gigawatt-hour (GWh) batteries at 1st and 2nd plants in Georgia, but BlueOval SK plans to build a total of three new plants in Kentucky and Tennessee with a capacity of 129 GWh, and reach up to 180 GWh in 2025. BlueOval SK will soon begin construction for the Tennessee plant as well.
SK On is also expected to build a new plant with a capacity of 20 to 30 GWh in the US with Hyundai Motor Company. The prospect is that SK On will take the largest amount of orders for EV batteries in the US based on its know-hows for plant operation in the US. By investing in the US plant, SK On plans to take the world's third-largest company by 2025.
SK On is ranked fifth in the EV battery market last year with a 6.7% share according to market researcher Yano Research Institute, It is fiercely competing with China's BYD, which is the world's fourth-largest EV battery manufacturers in the market. The market share gap between SK On and BYD is only 2.3%. SK On may be benefited from the recent enactment of the US Inflation Reduction Act (IRA) that has increased constraint on Chinese companies.
SK On Executive Vice Chairman Jae-won Chey said, “The Kentucky plant, which will lead the future of EV, will produce the world’s safest and most reliable batteries.”
By Staff Reporter Ji-woong Kim (jw0316@etnews.com)