On Wednesday, SK On Co. declared it would be investing 1.5 trillion won (US$1.12 billion) to construct a new factory in South Korea, its most significant domestic investment to date.
The upcoming third factory will span 44,125 square meters in an industrial complex in Seosan, South Chungcheong Province, according to a statement released by the battery manufacturing unit of SK Group.
SK On’s two existing domestic plants are both located in the same city.
The agreement for the investment was signed earlier in the day by SK On CEO Ji Dong-seop, the city government of Seosan, and the provincial government of South Chungcheong Province, in the presence of other officials.
The facility is scheduled to be finished in 2025, with an annual capacity of 14 gigawatt hours by 2028, SK On said.
This will boost SK On’s total domestic production capacity to around 20 GWh, enough to power approximately 280,000 electric vehicles.
The Seosan plant’s current production capacity is 5 GWh. Globally, SK On has the capacity to produce 89 GWh.
SK On CEO Ji Dong-seop (C) poses for a photo with South Chungcheong Province Gov. Kim Tae-heum (R) and Seosan Mayor Lee Wan-seob after signing a memorandum of understanding on the plan to build SK On's third battery manufacturing facility in Seosan, 98 kilometers southwest of Seoul, on Aug. 16, 2023, in this photo provided by SK On. (PHOTO NOT FOR SALE) (Yonhap)