Electric Vehicle Companies Settle in Georgia
SK Innovation Completes Plant 1
Trial Operation Begins in First Half of Year
Plant 2 Construction to Finish by End of Next Year
Mass Production Planned for Following Year
Expansion of Plants 3 and 4 Also Under Review
[Asia Economy Reporter Choi Dae-yeol] SK Innovation has emerged as a key electric vehicle (EV) hub in Georgia, where it is building an EV battery factory, as EV-related companies are rapidly establishing themselves in the state. With EV parts manufacturers clustering around SK Innovation, synergies are expected to be created. The batteries supplied by SK Innovation are considered core components that determine EV performance. The first plant, recently completed by SK Innovation, is scheduled to begin trial operations in the first half of this year, while construction on the second plant, recently resumed, is planned to be completed by the end of next year and enter mass production in the early part of the following year. As EV adoption in the U.S. is expected to expand rapidly, the state government has rolled up its sleeves to provide active support.
According to industry sources and local media Atlanta Journal-Constitution (AJC) on the 26th, foreign automotive parts companies such as Gedia, Teklas, and Enchem have established facilities near SK Innovation’s Georgia plant. Gedia, a German automotive parts company, is reported to manufacture EV-specific structures at the new Georgia plant. The company has mainly dealt with European automakers such as Daimler and Volkswagen.
Enchem, a Korean battery materials company, began building a factory in the nearby area last year and recently completed it. It is expected to produce electrolyte, one of the key battery materials, and supply it to SK. According to SK, companies such as Ecopro BM, which supplies cathode materials, air conditioning company Dongwon Deck, and battery equipment manufacturer Toptec have strengthened their local operations by building factories or establishing sales offices since last year. Pat Wilson, Georgia’s Commissioner of Economic Development, did not mention specific company names but stated, "We are in discussions with various companies, including anode material suppliers and recycling firms, to build an EV ecosystem."
The U.S., the world’s largest automotive market and historically a hub for vehicle manufacturing, has recently accelerated its transition to EVs over the past two to three years. The northeastern region, centered around Detroit?once known as the mecca of automotive plants?is also attracting EV and battery factories, similar to Georgia. This is due to the expected surge in EV demand following President Joe Biden’s Green New Deal policies, which include replacing government fleet vehicles and school buses with EVs.
Having selected Georgia as its production base in the U.S., SK is considering expanding beyond the second plant currently under construction to include third and fourth plants. Earlier, SK Group Chairman Chey Tae-won pledged to invest more than 5 trillion won in the Georgia plant. The first plant, which will begin trial production in the first half of this year, has an annual production capacity of about 9.8 GWh. Once the second plant is completed and mass production begins, local production capacity will increase to approximately 22 GWh annually. As SK plans to increase its global battery production capacity to 125 GWh over the next five years, the U.S. plant, along with its factories in China and Europe, will play a crucial role as one of the three main pillars.
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