SK Innovation to develop long-range EV battery by 2020

SK Innovation said Sunday it would seek to turn around the fortunes of its struggling China business by developing a longer-range battery for electric vehicles by 2020. 

According to a company official, the South Korean battery maker is planning massive investments in research and development for electric vehicle batteries as part of efforts to deal with the recent imposition of stricter requirements by the Chinese government on Korean battery firms. 

In the aftermath of the controversial deployment of the US Terminal High Altitude Area Defense anti-missile battery in Korea, Beijing has been retaliating against Korean businesses operating in China. SK Innovation suspended operations of a battery packing plant there in February due to reduced orders. 

Chinese electric vehicle manufacturers tend to shun batteries made by Korean firms because the government then removes subsidies for the automobiles, according to industry sources.

SK Innovation aims to develop a battery cell that can drive up to 500 kilometers with a full charge by 2020, with the aim of widening the technology gap with Chinese rivals. The company has already secured the technology to manufacture a battery with a range of 350 kilometers per charge.

“The Chinese government seems to protect Chinese battery makers, judging that the technology gap between Korean and Chinese firms is about three to five years,” said a spokesman at SK Innovation. “By enhancing our battery capacity, we could regain market share there by around 2020 when the subsidy policy is scheduled to be phased out.”

The chemical, refinery and battery unit of SK Group, the No. 3 conglomerate here, has announced plans to invest up to 3 trillion won this year. It, however, declined to reveal a specific figure for the electric vehicle battery business. The company said it will double the capacity of its electric vehicle battery production facility in Seosan, South Chungcheong Province. 

By Song Su-hyun (song@heraldcorp.com)