IFC gives SK ie technology a $300 million green loan

Industry

Published: 25 May. 2023, 16:27

IFC gives SK ie technology a $300 million green loan

SK ie technology CEO Kim Cheol-jung, left, and Riccardo Puliti, regional vice president for Asia and the Pacific at International Finance Corporation, pose for a photo after signing an agreement to grant a $300 million green loan Wednesday in western Seoul. [SK IE TECHNOLOGY]

International Finance Corporation (IFC) is extending a $300 million green loan to SK ie technology to expand its battery separator plant in Poland.

SK ie technology and IFC signed an agreement Wednesday for the green loan, a type of corporate financing in which companies borrow money at lower interest rates for eco-friendly products or services.

The financing package comprises a $200 million loan provided by IFC, along with an additional $30 million from Poland-based Bank Pekao S.A., $20 million from Italy's Intesa Sanpaolo and $50 million from PKO Bank Polski S.A.

IFC, a member of the World Bank Group, is the largest global development institution focused on the private sector in developing countries. IFC has offered loans and investments in over 100 countries so far.

SK ie technology's battery separator plant in Poland [SK IE TECHNOLOGY]

SK ie technology will use the $300 million to expand its lithium-ion battery separator manufacturing plant in southern Poland. The Korean company constructed Europe's first and largest battery separator plant in Poland in 2021 and is in the process of building three more.

Separators are membranes placed between negative and positive electrodes in batteries to prevent electrical contact between the two, which may result in explosion or ignition. They are a key component in lithium-ion batteries used in electric vehicles (EVs).

The four plants will have an annual production capacity of 1.54 million square meters (16.5 million square feet) by the end of 2024, enough to be used in making 2.05 million EVs.

“SK ie technology has been anticipating its customers’ needs by strategically building and expanding our separator factories in Korea, China and Poland,” said Kim Cheol-jung, CEO of SK ie technology. “Through this landmark green loan from IFC, we will help consolidate the establishment of a global EV supply system and contribute to Poland’s green transition.”

BY SARAH CHEA [chea.sarah@joongang.co.kr]