Export-Import Bank Provides $500 Million Green Loan to SK Inno Battery Business

Plan to Support 1.5 Trillion Won for K-Battery Globalization... 50% Increase

[Asia Economy Reporter Park Sun-mi] The Export-Import Bank of Korea announced on the 9th that it will provide a $500 million green loan to SK Innovation's dedicated secondary battery production corporation being constructed in Hungary.

A green loan refers to a loan designated for eco-friendly projects such as renewable energy and electric vehicles. It is conducted by obtaining 'eco-friendly certification' from global certification bodies and then borrowing funds from domestic and international financial institutions.

This project involves constructing a second electric vehicle battery plant with an annual production capacity of 9.8 GWh in Komarom, northern Hungary, aiming for mass production in the first quarter of 2022. The nearby first plant began mass production in the first quarter of 2020 and operates with an annual capacity of 7.5 GWh.

The bank expects that this financial support will help SK Innovation expand its rapidly growing European electric vehicle battery market and gain recognition for the project's eco-friendliness and social responsibility through green loan procurement.

In January, the bank established a mid- to long-term strategy to promote the globalization of the K-New Deal and announced plans to supply 80 trillion KRW over the next 10 years to seven key sectors: hydrogen energy, wind and solar power, secondary batteries and ESS, future mobility, 5G and next-generation semiconductors, pharmaceuticals and healthcare, and digital content.

In the secondary battery sector, about 1 trillion KRW was supported last year, and this year, through a newly established battery-dedicated organization created by the early-year industry system restructuring, it plans to provide 1.5 trillion KRW in financing, a 50% increase compared to the previous year.

Visiting Governor Bang Moon-kyu of the bank said, “Korean battery companies are continuing active investments to secure global market leadership based on excellent technology in the battery market, which is called the second semiconductor," adding, "We hope this financial support will accelerate the globalization of K-Battery and contribute to creating a virtuous industrial ecosystem that strengthens the competitiveness of related core material and component companies."