South Korea's SK Innovation is set to invest 1.2 trillion won ($1 billion) in a new battery factory in China, as it looks to ramp up lithium-ion battery production to 200GWh in the next four years.
Detailed plans for the new factory were not revealed, but in July the firm said it was to up production to 200GWh from a previously announced goal of 125GWh.
The company’s production capacity is 40GWh.
The South Korean battery maker supplies electric vehicle (EV) batteries to Ford Motor, Volkswagen and Hyundai Motor among others, and has battery production sites in the US, Hungary, China and South Korea.
In July, SK announced it would spinoff its battery division to allow it to concentrate on meeting demand for batteries as global EV sales are set to increase from last year’s 2.5 million, according to IHS Markit.
SK Innovation CEO Kim Jun said in July: “We haven't decided how to split the battery business ... it takes quite a lot of resources to further grow our growing battery business, so we are considering the spinoff as one of the ways to secure resources.”
The South Korean battery maker told news outlet Reuters that it had more than 130 trillion won ($115 billion) worth of battery orders, which is more than 1TWh worth of batteries, enough to power around 14 million electric vehicles.