SK Innovation, which is aggressively pursuing business related to EV, confirmed the spin-off of the material business, which has been fostered as its future growth engine. Kim Joon, President of SK Innovation, said, "We should go well together" with Hyundai Motors, which is focusing on hydrogen cars. He added, "It would be good if South Korea could catch both the hydrogen and green car markets."
President Kim met with reporters after the 12th regular shareholders' meeting held at SK Surin Building in Jongno-gu, Seoul on the 21st. Hydrogen cars developed and sold by Hyundai Motor and Toyota of Japan are driven by electricity made from hydrogen fuel cells. There is no need to charge the battery as it uses hydrogen as fuel. A secondary battery is installed, of which capacity is much smaller than EV.
EV is leading the global eco-friendly auto vehicle market. In the industry, the market size is expected to grow from 6.1 million units this year to 22 million units by 2025. This is why SK Innovation, LG Chem, Samsung SDI, and CATL, are competing for the expansion of battery capacity. In the case of hydrogen cars, Korea and Japan are supporting at the government level. In Korea, as part of measures to prevent fine dust, plans to convert commercial vehicles such as trucks and construction equipment to hydrogen cars by 2035 are set. Also, "hydrogen energy-based demonstration city" in which only cars, buses, and trains are operated will be selected this year.
SK Innovation, a latecomer to the EV battery market, has set the goal of securing a production capacity of 60 gigawatts per year (GWh) by 2022 and becoming one of the top three battery makers between 2023 and 2025. To date, the capacity is a little less than 40GWh. To achieve the goal, the investment of the Georgia factory scale needs to be doubled. President Kim said, "We are proceeding on schedule, and we will gradually build up the capacity by 2022. Based on technological competitiveness, we succeeded in winning large-scale orders and laid the groundwork for profitability improvement."
"EV battery is a growth option that will lead to future growth," he said and added, "We will expand our capacity by establishing economies of scale and build a stable and efficient global supply system to build the base for profitability improvement."
SK Innovation plans to cooperate extensively with global players in the petroleum and lubricant business while expanding its chemical business in China, a growth market while securing downstream options constantly. In the case of petroleum development projects, the company will seek opportunities for further growth in the US and Asian markets based on selection and concentration.
On the day of the meeting, it has been confirmed that SK IEE Materials (tentative) will build its own management system on April 1st, strengthening its business expertise as a material business subsidiary of SK Innovation. The revision of the Articles of Incorporation, the appointment of members of the Audit Committee, and the approval of the remuneration limit for directors were also approved as the original drafts. The meeting was finished within 30 minutes.