SKIET Secures $300 Million from International Finance Corporation under World Bank Group

On the 24th, SKIET President Kim Cheol-jung Signs 'Green Loan' Agreement
Secures 400 Billion KRW for European Separator Factory

Battery separator manufacturer SK Innovation Technology (SKIET) is swiftly securing investment funds to establish a global production base by attracting large-scale funding from the International Finance Corporation (IFC), an international financial institution under the World Bank Group.

On the 24th, SKIET announced that it held a green loan borrowing signing ceremony worth a total of $300 million (approximately 400 billion KRW) at the Fairmont Hotel in Yeouido, Seoul, attended by Kim Cheol-jung, President of SKIET, and Ricardo Puliti, Vice President of IFC Asia-Pacific region, among others. Of the $300 million, $200 million comes from IFC's own funds, and $100 million is raised through participation from private banks.

SKIET President Kim Cheol-jung (left in the photo) and Ricardo Puliti, Vice President for Asia-Pacific at the International Finance Corporation, are posing for a commemorative photo after the signing ceremony held on the 24th at the Fairmont Hotel in Yeouido, Seoul. Photo by SK IE Technology

IFC is the world's largest development finance specialized international financial institution. As of last year, it conducted approximately $32.8 billion (43 trillion KRW) in private investments and loans across more than 100 countries. The $300 million secured by SKIET will be used as investment funds for expanding the lithium-ion battery separator (LiBS) production plant currently being built in the Silesian Voivodeship of Poland. SKIET established a Polish subsidiary (SKBMP) and built the first battery separator production plant in Europe in 2021, currently operating Plant 1, while Plants 2 to 4 are under expansion.

The fourth plant is scheduled to be completed by next year. After the expansion, Plants 1 to 4 in Poland will secure the largest production capacity in Europe, with an annual separator production capacity of 1.54 billion square meters. This production scale corresponds to battery separators used in approximately 2.05 million electric vehicles.

SKIET operates separator plants in Korea, China, and Poland, and is also considering entering the North American market in light of the U.S. Inflation Reduction Act (IRA) announcement. Leveraging this IFC loan, SKIET plans to smoothly proceed with funding required for the expansion of the Polish plant as well as future investments in North America.

Oh Taek-seung, Chief Financial Officer of SKIET, said, "It is highly meaningful that we received official recognition from IFC, a leading global financial institution, after strict screening including document submission and on-site inspections since May last year." He added, "Based on this, if North American investment is confirmed in the future, it is expected to serve as a favorable precedent for securing various public funds and loan borrowings related to the required investment capital."

SKIET Poland factory exterior. Photo by SK IE Technology

This is the first time that IFC's green loan has been made to an overseas subsidiary of a domestic manufacturing company. IFC expects that supporting SKIET's expansion of its electric vehicle battery separator production facility in Poland will meet the rapidly increasing demand for electric vehicle batteries in Europe and contribute to green transition efforts such as reducing carbon emissions in the transportation sector.

Ricardo Puliti, Vice President of IFC Asia-Pacific region, said, "Unprecedented investment opportunities are being created through the Net Zero transition, and according to IFC research, electric vehicle battery demand within the European Union alone is expected to increase from the current 30 GWh to 1300 GWh by 2035." He added, "Through a strong partnership with SKIET, we will be able to build a more robust electric vehicle value chain to respond to rapidly increasing demand."

He continued, "We look forward to cooperating with innovative Korean companies like SKIET to transfer technological know-how and expand climate change response efforts in emerging markets."

Kim Cheol-jung, President of SKIET, said, "SKIET is striving to successfully establish global production bases in Korea, China, and Europe and to quickly respond to customer needs." He added, "Based on the funding raised from IFC, we will contribute to creating an electric vehicle ecosystem in Europe and continuously work to enhance corporate value by smoothly advancing global market entry in the future."

This content was produced with the assistance of AI translation services.