World's No.1 SK Separator Winning Orders Without Factories, to be Manufactured in Europe as Well

SK IET Poland Plant Fully Operational
Significance of Europe's First Production Base Launch
Additional Plant Construction by 2024
Accelerating Global Market No.1 Pursuit

On the 6th (local time), Sun Mira, Ambassador of the Republic of Korea to Poland (fourth from the left), Pi?chowiak, Deputy Minister of Technology Development, and Noh Jae-seok, President of SK IET, attended the completion ceremony of SKIET's first plant in Poland.

[Asia Economy Reporter Choi Dae-yeol] SK IE Technology (SK IET) held a completion ceremony on the 6th (local time) for its lithium-ion battery separator factory in the Silesian Voivodeship, Poland. As a battery materials business subsidiary of SK Innovation, this is the first time the company has operated a production base in Europe, considered the world's largest electric vehicle market. Following this first plant, the company plans to build additional factories and expand production capacity by 2024 to solidify its position as the global leader.

SK IET's Poland Plant 1 has been in trial operation since August after mechanical completion in June. The company expects commercial operation to begin in the fourth quarter of this year. The annual production capacity is 340 million square meters, similar to the China Changzhou Plant 1, which started operations last year. Including the domestic plant (520 million square meters), the company currently has an annual production system of 1.37 billion square meters domestically and abroad.

Separators are one of the four core materials of lithium-ion batteries and are related to battery safety. SK IET is ranked first globally in the tier 1 wet separator market, composed of high-quality separator manufacturers. In this market, Japanese companies such as Asahi Kasei, Toray, and W-Scope stand out. SK IET supplies products to global leading battery companies, including SK On, a group affiliate.

The company stated, "As demand for high-density batteries increases and the importance of battery safety is emphasized, the demand for high-quality separators has grown. No fire incidents have occurred yet, and our high quality is recognized in Europe."

SK IET Poland Plant No. 1 Overview

Europe is one of the world's three major electric vehicle markets alongside China and the United States. As electric vehicle adoption rapidly increases, battery demand has surged. The three major domestic battery companies, including LG Energy Solution, SK On, and Samsung SDI, operate large-scale battery factories in Eastern Europe, such as Poland and Hungary. According to market research firm IHS Markit, the European electric vehicle battery market is expected to grow more than fivefold from 82 GWh this year to 410 GWh by 2026.

Following the Poland Plant 1, SK IET has already decided to build Plants 2 to 4. By 2024, the company plans to invest a total of 2 trillion KRW to establish the largest production capacity in Europe at 1.54 billion square meters. Plant 2 (annual capacity of 340 million square meters), along with the trial-operated Plant 1, is currently under construction with a goal of commercial operation in 2023.

Plants 3 and 4 (each 430 million square meters) began construction in July, targeting operation around 2024. By the second half of 2024, when domestic, Chinese, and European overseas plants are all in place, global production capacity will reach 2.73 billion square meters, approximately doubling the current capacity. Although deliveries from Poland Plants 2 to 4 will only be possible the year after next, contracts are already being rapidly signed, the company said.

The company was recently selected as a recipient of the 5th Borderless Investor Award, given by Polish government agencies and organizations to foreign companies investing domestically, alongside Amazon and Toyota. At the completion ceremony, Pi?chowiak, Deputy Minister of Technology Development of Poland, said, "Once Plant 4 is completed, it will be the largest separator factory within the SK Group, creating 1,000 jobs." SK IET President Noh Jae-seok said, "We will contribute to the activation of the European electric vehicle market along with the company's growth. We will supply not only battery companies in Poland but also in Hungary, Europe, and the United States, contributing to the development of the Polish regional economy."