South Korean battery manufacturer, SK Innovation, has secured green loans worth KRW800 billion ($656 million) from banks across United States, Europe and China to expand its production capacity of EV batteries as well as Li-ion battery separators (LiBS).
The company plans to invest this amount in its battery manufacturing facilities in Hungary and US as also LiBS plants in China and Poland. With this loan SK Innovation is planning tap into the EV market which is expected to witness a significant increase in demand in the near future.
LiBS is an essential component in EV batteries. The South Korean giant is a leading producer of LiBS and has set itself a target to capture at least 30% of the market by 2025. The company is planning to build LiBS manufacturing plants in China and Poland. SK Innovation operates in the LiBS sector through its subsidiary SK IE technology.
SK Innovation currently has battery manufacturing facilities in Changzhou (China), Komarom (Hungary) and the US which are still under construction. Operations in China and Hungary are expected to begin in the first half of 2020 while the facility in the US will get operational in 2022.