SK On is planning to expand its electric car battery production capacity in South Korea to meet rising demand from customer Hyundai Motor.
Hyundai Motor has started construction of a new EV production facility at Ulsan.
SK On is planning to start spending on its facilities at Seosan this year with the aim to start commercial production in 2024 to supply Hyundai with batteries for EV made at Ulsan, sources said.
SK On is expected to spend around 500 billion won to expand Seosan’s current capacity of 5GWh a year to 10GWh.
Genesis G80, GV60, and GV70 currently use batteries from SK On.
SK On’s Seosan facility started battery production back in September 2012 and reached the 5GWh capacity in 2018.
At the same time, SK On started building facilities abroad in China, Hungary, and the US and focused more on these facilities than its one in South Korea.
SK On will be manufacturing mostly batteries with lengths of 300mm with its expanded capacity.