The electromobility industry is developing by leaps and bounds and requires a proportional expansion in the production of traction batteries. The profile companies are ready to attract serious investment to fund projects, but Korean SK On is in no hurry to go public and hopes to settle for other sources of funding by 2025.
The resource told about the plans of the manufacturer, which was created last year by the method of structural separation from SK Innovation. Business Korea Referring to statements made by SK On Vice Chairman Kim Jun. According to him, the company has no plans to go public in the near future. For this step, the management wants to choose the timing that corresponds to the maximum valuation of the core business by the market and is not expected to be before 2025.
By then, the company wants to increase its annual battery production to 220 GWh. While they were limited to 40 GWh last year, SK On wants to break through the 77 GWh mark by the end of this year. SK On is now planning to set up two large joint ventures for the production of traction batteries in Turkey and the USA. The size of the investments in them is now being debated, but they’re not that far off from the $2.5-3.2 billion the press is citing for each of the companies, company officials said. All necessary agreements with partners are to be made in the current half year. Funding sources are also discussed. In one case they may include subsidies from the Turkish authorities, but in general SK On counts on customers’ interest to finance the construction of new businesses. In any case, the company is in no hurry to sacrifice its financial stability.