Chairman Chey Tae-won Visiting SK Battery Plant for the First Time in Georgia, USA

Next Week Accompanying the Korea-US Summit
Completion of Plant 1, Preparing for Test Operation
Construction Targeting Mass Production of Plant 2 in the Year After Next
Reviewing Additional Plans for Plants 3 and 4
Possibility of Announcing Additional Investment Plans

SK Battery America factory in Commerce, Georgia, USA. The first plant, SK Innovation's electric vehicle battery production base in the United States, was completed earlier this year, and construction of the second plant is currently underway. Photo by SK Innovation

[Asia Economy Reporter Choi Dae-yeol] SK Group Chairman Chey Tae-won has decided to stop by the state of Georgia next week during his visit to the United States. Georgia is where SK is building a large-scale electric vehicle battery factory, which is considered a future core growth engine. This will be the first time Chairman Chey personally visits the factory since the investment plan was announced in 2018.

According to industry sources on the 13th, Chairman Chey plans to meet Korean War veterans in Atlanta, Georgia, on the 24th (local time) to hold a wreath-laying ceremony and express his gratitude. In line with this schedule, he is expected to visit SK Innovation's electric vehicle battery factory located in Commerce, near Atlanta. SK had previously named the U.S. as one of its global battery production hubs and announced a large-scale local investment plan in 2018.

The first plant was completed earlier this year and is preparing for trial operation, while the second plant is under construction with the goal of mass production by the year after next. Approximately 3.16 trillion KRW has been allocated for the construction of the first and second plants, and internal discussions are ongoing about adding third and fourth plants. When Chairman Chey visited the U.S. in 2018, he pledged to invest more than 5 billion USD (5.6 trillion KRW) in the American battery business. SK Innovation's local battery plant in Georgia represents the largest foreign investment ever made in the state.

Chairman Chey's visit to Georgia coincides with his trip to the U.S. for the Korea-U.S. summit scheduled on the 21st. It is expected that several Korean business leaders operating in the U.S. will accompany him, aligned with President Moon Jae-in's visit to the U.S. Although the Blue House and individual companies have not disclosed specific names, executives mentioned include Kim Ki-nam, Vice Chairman in charge of semiconductors at Samsung Electronics, and Choi Si-young, President of the Foundry Business Division, both from Samsung, which is considering semiconductor factory investments in the U.S., as well as Kim Jong-hyun, President of LG Energy Solution, which is building a joint venture factory with General Motors (GM), the largest American automaker.

Minister of Trade, Industry and Energy Moon Seung-wook and Chairman of the Korea Chamber of Commerce and Industry Choi Tae-won are posing for a commemorative photo on the 12th at the Korea Chamber of Commerce and Industry in Jung-gu, Seoul. Minister Moon met with Chairman Choi to discuss the direction of industrial, trade, and energy policy implementation and to listen to the difficulties and suggestions of the business community. / Photo by Moon Honam munonam@

SK's battery plant in Georgia provides thousands of local jobs and is considered a key component of electric vehicles, drawing significant interest from local political and governmental circles. One of the sectors President Joe Biden instructed to review supply chains for domestic industrial protection was electric vehicle batteries. President Biden has actively responded to climate change through initiatives like the Green New Deal and has made expanding electric vehicle adoption a major campaign pledge. For SK, despite rumors of withdrawing from the local business as recently as early last month due to a trade secret infringement dispute with LG Energy Solution, the two companies have since reached an agreement, allowing SK to accelerate its U.S. battery business. Industry insiders anticipate that SK may announce additional local investment plans aligned with Chairman Chey's U.S. visit schedule.

The batteries produced by SK Innovation at the U.S. plant are expected to be used in electric vehicles manufactured locally by Ford and Volkswagen. Notably, Ford's pickup truck F-150, which uses SK batteries, has been the best-selling single model in the U.S. for decades and is considered an iconic American vehicle. Volkswagen, ranked as the world's second-largest electric vehicle manufacturer by sales volume, is also prioritizing expanding electric vehicle sales in the U.S. to surpass Tesla.