SK Innovation inks major battery production deal

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SK Innovation inks major battery production deal

Published: 03 Feb. 2020, 20:22

SK Innovation signed a 2.7 trillion won ($2.3 billion) contract with EcoPro BM, a local battery material maker, on Monday to let the producer supply cathode material for the SK affiliate.

Under the agreement, EcoPro BM will produce nickel cobalt manganese for lithium-ion battery with the contract term lasting until Dec. 31, 2023. The material producer will build a new factory in Pohang, North Gyeongsang, as early as the first quarter.

The stock price of EcoPro BM jumped 20.98 percent on Monday to close at 64,000 won. SK Innovation sank 5 percent to 123,500 won.

SK Innovation has pushed for expanding its production of the rechargeable batteries to capitalize on increasing demand for electric vehicles.

By Park Eun-jee