SK On, 2.6 Trillion KRW Investment
Construction of Third European Plant with Annual 30GWh Capacity
SK Innovation's second European plant under construction in Komarom, Hungary. [Image source=Yonhap News]
[Asia Economy Reporter Donghoon Jeong] The Hungarian government will provide subsidies amounting to 280 billion KRW to SK Innovation's secondary battery subsidiary SK On's local factory.
On the 22nd (local time), the European Union (EU) approved the Hungarian government to provide government subsidies worth 209 million euros (approximately 280 billion KRW) for SK On's Europe Plant 3 in Hungary.
The European Commission (EC), the EU's executive body, approved the Hungarian government's support plan, stating, "The expectation for regional development and job creation outweighs the potential market competition distortion caused by the support."
SK On announced the related project last January. The plan was to invest a total of 2.6 trillion KRW by 2028 to build Europe Plant 3 in Iv?ncsa, Hungary. This factory, which produces lithium-ion batteries and battery modules for electric vehicles, has a production capacity of 30 GWh per year, which is more than 1.5 times the combined capacity of the existing Europe Plants 1 and 2 in Kom?rom, Hungary. SK On supplies electric vehicle batteries to Volkswagen, Ford, Hyundai Motor Company, and others.
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