SK Innovation confident of catching up with global battery makers

By Lim Chang-won Posted : August 22, 2018, 17:59 Updated : August 22, 2018, 17:59
 

[Courtesy of SK Innovation]


SEOUL -- As a latecomer in the battery industry, SK Innovation, a subsidiary of South Korea's third-largest conglomerate SK Group, is confident of catching up with domestic rivals LG Chem and Samsung SDI, which have stepped up production to maintain their global leadership and meet growing global demands.

SK innovation CEO Kim Jun compared electric car batteries to the semiconductor industry which requires a pre-emptive investment to secure a technical edge against competitors. The company has started building its second oversea battery plant in Changzhou, China, after the construction of its first overseas plant in Hungary began in February.

"It is difficult for second-tier players to catch up with the leading group," Kim said, adding that barriers are very high in the "resource intensive" battery market. 

In July, the SK group joined hands with Tsinghua University, a top Chinese school known for research in engineering and computer science, for joint research in next-generation microchips and car batteries, underlining group chairman Chey Tae-won's initiative to nurture its battery business as a sustainable growth engine.

"South Korean battery makers such as LG and Samsung are doing well together," Kim said "If we go ahead for three or five years, we can take the market.", he said, citing consolidation in the Chinese battery industry.

Yoon Ye-sun, who heads SK Innovation's battery division, said his company has a high level of technology enough to catch up with Samsung and LG. ."I think we have enough technology."

SK Innovation aims to develop batteries that would allow an electric vehicle to travel more than 500 kilometers (310 miles) on a single charge by 2018 and 700 kilometers by early 2020. The company has secured a stable source of crucial minerals used to produce batteries in a commodity off-take agreement with Australian Mines which runs cobalt and nickel mines at Sconi in Queensland.


 
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