SK On Invests a Record Domestic High of 1.5 Trillion KRW Expansion in Seosan

Total Production Capacity of 20GWh Upon Completion in 2025
Expanded 100 Times in 11 Years

SK On Seosan Factory

SK On is making a large-scale investment to expand its Seosan plant, a domestic battery outpost. This move aims to complete the establishment of core infrastructure that will serve as the foundation for the development of the domestic electric vehicle battery industry.

On the 16th, SK On announced that it signed an 'SK On Investment Agreement (MOU)' at the provincial government office located in Hongseong County, Chungcheongnam-do, along with Chungcheongnam-do, Seosan City, and other officials. Attendees included Kim Tae-heum, Governor of Chungcheongnam-do, Lee Wan-seop, Mayor of Seosan, Ji Dong-seop, CEO of SK On, and other key stakeholders.

According to the agreement, SK On will expand its third plant on approximately 44,125㎡ (13,348 pyeong) of land within Auto Valley in Seosan City, Chungcheongnam-do. The total investment amount is 1.5 trillion KRW, marking the largest domestic investment by SK On. Chungcheongnam-do and Seosan City have pledged to provide administrative and financial support, including permits and approvals.

The third plant is scheduled to complete its expansion by 2025, after which equipment replacement and process improvements will be carried out to sequentially reach a maximum production capacity of 14GWh by 2028. With this, SK On's total domestic production capacity will reach approximately 20GWh, enough to equip 280,000 electric vehicles annually.

This large-scale investment plan means that SK On will increase its total production capacity at the Seosan plant by more than 100 times in 11 years since its first production started there. SK On established a mass production line with a capacity of 200MWh (0.2GWh) at Seosan Plant 1 in 2012 and gradually expanded production capacity to about 5GWh by 2018.

This expansion is also expected to significantly contribute to regional economic development. Following the existing Plants 1 and 2, which have played a major role in job creation in the Seosan area, the expansion of Plant 3 will create additional new jobs.

The expansion is also expected to have a trickle-down effect on domestic battery equipment and raw material suppliers. A significant portion of the investment in Plant 3 will be used to purchase battery equipment, and as production increases, the scale of raw material purchases will gradually grow. The SK On Seosan plant has functioned as a key facility for accumulating know-how necessary for establishing a global battery production base and as a cradle for nurturing battery specialists.

Since SK On began full-scale global expansion in 2018, it has established a global mass production system totaling 89GWh across the United States, Europe, and Asia within five years. SK On plans to implement a smart factory at Seosan Plant 3 by introducing the latest equipment and optimizing manufacturing operations. Compared to existing lines, production speed is expected to increase by more than 30%, while process accuracy will also be significantly enhanced. Alongside the expansion, productivity improvements will be pursued through process improvements such as line modifications at existing plants.

In addition to the expansion of Seosan Plant 3, SK On has led the establishment of domestic electric vehicle battery infrastructure across various fields including cells, raw materials, and research and development. In April of this year, SK On invested 470 billion KRW in the Daejeon Battery Research Institute to expand research facilities for next-generation batteries. Earlier in March, SK On decided to invest a total of 1.2 trillion KRW with EcoPro Materials and GEM to build a precursor plant, a key battery material, in the Saemangeum National Industrial Complex.

Kim Tae-heum, Governor of Chungcheongnam-do, said, "SK On is a company leading future energy through technological innovation," adding, "I hope that through the production of the best batteries that charge safely and quickly and last long, Chungcheongnam-do will realize the 'Global Number One' in the special carbon-neutral economy province."

Lee Wan-seop, Mayor of Seosan, said, "We look forward to regional economic revitalization and the development of the automotive industry following SK On's large-scale investment," and added, "The city will continue to build a business-friendly Seosan by providing multifaceted administrative and financial support to investing companies."

Ji Dong-seop, CEO of SK On, said, "This investment is meaningful in terms of strengthening domestic battery production capabilities," and added, "Based on bold investment, we will contribute to the regional economy and strive to become a leading company in the global market."

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