SK and China’s Geely Join Hands for 'Future Mobility Investment'

$300 Million New Mobility Fund Established
$30 Million Contributions Each
European Banks and Asian Pension Funds to Attract Investors
Connected, Autonomous, Shared, Electrified
Investing in CASE Sector

[Asia Economy Reporter Choi Dae-yeol] SK Group and Geely Automobile Group, China’s leading private automobile company, have jointly established a fund to invest in core sectors and promising early-stage companies in the future mobility industry.

The primary investment targets are in the CASE fields, an acronym for Connected, Autonomous, Shared, and Electric. These keywords symbolize the future of the automotive industry, including autonomous driving and electric vehicles, and are attracting intense interest from major global capital, not only in Korea but worldwide. As the future mobility business is just beginning to emerge, competition for market dominance through investment is expected to become even fiercer.

On the 18th, SK Inc. and China’s Geely Automobile Group held a commemorative ceremony to celebrate the establishment of the “New Mobility Fund.” The event, held online, was attended by executives from both companies, including SK Inc. President Jang Dong-hyun and Geely Automobile CEO Daniel Li. The New Mobility Fund amounts to $300 million (approximately 340 billion KRW). Both companies will each contribute $30 million as key investors. They plan to attract investors from around the world, including European banks, Asian regional pension funds, and limited partners (LPs) consisting of individuals and institutions.

Jang Dong-hyun, President of SK Inc. (right in the photo), and Daniel Lee, CEO of China's Geely Automobile Group, held an online ceremony on the 18th to finalize the establishment of the New Mobility Fund. The two companies agreed to establish a multifaceted cooperation system in the mobility business. Photo by Jang Dong-hyun

SK Inc., as an investment specialist company, focuses its investments on future mobility-related fields such as advanced materials, eco-friendly technologies, and digital sectors. Within the group, there are various affiliates engaged in automotive-related upstream and downstream businesses, including hydrogen projects considered future eco-friendly fuels (SK E&S, U.S. Plug Power), platform businesses (T map Mobility), electric vehicle batteries (SK Innovation), and vehicle rental, sharing, and management (SK Networks).

Geely Automobile is regarded as the largest private automobile company in China, the world’s largest complete vehicle market. Beyond local production and sales, it operates globally with premium brands such as Sweden’s Volvo, electric vehicle startup Polestar, and high-performance British carmaker Lotus.

Viewing CASE as a promising sector is a global trend. Complete vehicle manufacturing is known as the “flower of manufacturing” and occupies the top tier in the traditional industry value chain. It is anticipated that the future industrial landscape will also be structured around mobility.

On the 2nd, Prime Minister Chung Sye-kyun, who visited the planned site for SK Incheon Petrochem's liquefied hydrogen project, is reviewing the progress with SK Group Chairman Chey Tae-won (first on the right) and Hyundai Motor Group Chairman Chung Eui-sun (third).

The New Mobility Fund plans to proactively identify and invest in promising companies within the CASE domain. The fund will be managed by veteran fund managers with over 20 years of experience at global investment banks such as Macquarie and Morgan Stanley. Both companies expect that combining SK Inc.’s investment expertise accumulated in the global investment industry with Geely Automobile Group’s capabilities in successfully managing multiple complete vehicle brands will lead to successful investments. Additionally, the two companies have agreed to collaborate in various fields beyond the fund, including hydrogen fuel, battery materials, semiconductors, and autonomous driving.

Jang Dong-hyun, President of SK Inc., said, “SK and Geely Automobile Group share a common vision and strategy, including a commitment to eco-friendly businesses and rapidly strengthening their positions in the global market. By leveraging the strengths of both companies and cooperating, we believe we can establish a solid foothold in the new mobility sector.”