SK Innovation will separate from the battery business and the E&P business
SK Innovation has decided to split its battery production and exploration and production (E&P) activities as independent companies. SK Innovation will be a holding company that will play the role of “Green Portfolio Designer & Developer” and put more emphasis on improving the value of the company.
The upcoming split of two companies will take place in the form of a simple split and split, in which SK Innovation will own all of the issued shares of the new firms. The assets and liabilities belonging to the two companies will respectively be transferred to the newly created company.
SK Innovation’s electric vehicle battery factory located in Seosan, South Korea
SK Battery Co., Ltd. (working name) will be responsible for medium to large electric vehicle batteries, battery as a service (BaaS) and energy storage system (ESS). SK E&P Co., Ltd. (provisional name) will be in charge of oil exploration and production activities and carbon capture and storage (CCS) activity.
SK Innovation said the split would be a turning point in ensuring global competitiveness in the battery industry. The battery sector aims to become a leading global player on the basis of its “1 terawatt + α” battery order books. (Previous article.)
Currently, the company has an annual battery production capacity of 40 GWh, produced in various countries including South Korea, United States, China, Hungary. The company plans to rapidly expand its production capacity to 85 Gwh by 2023, 200 Gwh by 2025 and 500 Gwh by 2030. In addition, the company is growing at a rapid pace, with recent announcement to form a joint venture with Ford. (Previous article.)
The company will expand the battery application market to products such as energy storage system (ESS), flying cars, robots and others, and will also provide services such as the Battery-as-a platform. -Service (BaaS).
At the same time, the battery activity will continue with Life Cycle Analysis (LCA) and improvement in order to complete its ESG management. On this basis, he set himself the goal of joining the RE100 by 2030 and reaching Carbon Net Zero by 2035.