Battery production capacity to quadruple from 5 gigawatt hours to 20 gigawatt hours per year
Seosan, Chungcheongnam-do. It was announced on August 16 at the Chungnam Provincial Office that Seosan city has signed a memorandum of understanding (MOU) with SK energy, a leading electric vehicle battery manufacturer, to expand its factory.
According to the city, Seosan Mayor Lee Wan-seop, Chungnam Governor Kim Tae-heum, and Ji-Dong-seop, CEO of SK energy, signed a memorandum of understanding and exchanged a tripartite agreement at the ceremony.
SK innovation has been operating the Seosan plant in the Auto Valley under the name SK innovation since 2012, and has been expanding battery production to a total capacity of 5 gigawatt-hours per year in a phased expansion through 2018.
Under the agreement, by 2025, SK energy will invest KRW 1.5 trillion in the remaining site of the Seosan plant in the Jigok-myeon Auto Valley General Industrial Complex to build three additional battery manufacturing plants with a total construction area of 44,125㎡ and a gross floor area of 126,909㎡.
SK innovation's large-scale investment will significantly expand the battery production capacity of the Seosan plant from 5 gigawatt-hours per year to 20 gigawatt-hours, quadrupling its capacity to produce batteries for 200,000 additional electric vehicles per year.
The city expects the investment to be a great addition to the local economy, creating 800 new jobs and generating KRW 124.1 billion in added value annually, and is expected to contribute significantly to the development of related electric vehicle industries in the region.
"This investment is significant in terms of strengthening our domestic battery production capacity," said Ji Dong-seop, President and CEO of SK innovation. "Based on our bold investment, we will contribute to the local economy and strive to become a leading company in the global market."
Seosan City Mayor Lee Wan-seop said, "We look forward to revitalizing the local economy and developing the automotive industry with the implementation of SK energy's large-scale investment." "The city will continue to build a business-friendly Seosan by providing administrative and financial support for investing companies."