SK Innovation has succeeded in supplying batteries to global automotive company Volkswagen.
SK Innovation announced on November 14 that it signed a battery supply contract with Volkswagen for electric vehicles in the U.S. and Europe.
Regarding the terms of the contract, the company made it clear that details such as supply volume and price are flexible according to the contract with Volkswagen.
SK Innovation is planning to produce and supply orders from U.S. and European factories. In order to do this, the company is considering having 3 or 4 finalists for establishing new battery plants in the U.S. and is also considering candidates for new plants including Hungary.
It is heard that the size of new plants in the U.S. and Europe and the total amount of their investments are still under consideration.
The company is also looking into extending its facilities with changes in supply volume of Volkswagen and additional orders in mind.
"This large-scale order was recognized by global automotive manufacturers for manufacturing excellent electric vehicle batteries and stable supply capability of SK Innovation," said a representative for SK Innovation. "Based on this, we will actively expand our global territories to meet the growth of global electric vehicle markets."
Annual battery production for SK Innovation is expected to expand to about 20GWh by 2022, including an annual 7.5GWh factory built in Hungary and 7.5GWh battery plant under construction in Changzhou, China.