SK finalizes deal in China to make electric vehicle batteries

SK Innovation, the holding company of SK Group’s energy business subsidiaries, said yesterday it officially signed a deal to establish a joint electric vehicle battery venture with two state-run partners in China: Beijing Automotive Industry Corporation and Beijing Electronics Holding. The three companies signed a preliminary agreement in April.

SK Innovation said the three companies will invest a total of 1 billion yuan ($163 million) and will set up the joint venture in late September. The joint venture will produce battery packs for 10,000 electric vehicles until the end of next year, and aims to double the capacity by 2017.

The company added that it expects the venture to have annual sales of 1.2 billion yuan and become the top EV battery producer in China.

SK Innovation said that it will also work with Chinese business partners to work on an Electric Vehicle Eco System, which focuses on establishing charging systems and car sharing systems to boost use of electric vehicles.