S. Korean battery makers boosting investment to expand production capacity of EV batteries
Updated: 2021-08-02 13:36:39 KST
To meet the rising demand for electric vehicle batteries South Korea's leading battery makers including LG Energy Solution, SK Innovation, and Samsung SDI are making large investments to expand their production capacity.
The companies are trying to increase their in-house production of key components to secure a more stable supply chain and lower their manufacturing costs.
SK Innovation recently announced it will increase its battery separator production capacity from 1.4 billion square meters to 4-billion square meters by 2025.
To achieve this, the company said it will invest around 4.3 billion U.S. dollars.
Battery separators are one of the key components of lithium-ion batteries used in electric cars as they prevent batteries from exploding while charging.
Also, SK Innovation's battery material subsidiary, SKIET, is set to build two additional electric vehicle battery separator plants in Poland.
Meanwhile LG Chem plans to invest 5.2 billion dollars by 2025.
By the end of this year, the chemical firm plans to start building a battery plant with an annual production capacity of 60-thousand tons in the southeastern city of Gumi.
And it also plans to build another factory with a production capacity of 30-thousand tons in the city of Cheong-ju.
Samsung's battery maker Samsung SDI aims to raise its in-house production of cathodes, a key part of EV batteries to 50 percent by 2023.
It has also been building a cathode factory in the southeastern city of Pohang to start mass production next year.
Bae Eun-ji, Arirang News.