SK Innovation, a South Korean petroleum refining to petrochemicals production company, plans to invest 400 billion won ($354 million) to build a plant for key parts of electric car batteries in China as part of its effort to better compete in the world’s largest electric vehicle (EV) market.
The plant will make separators for lithium-ion batteries and ceramic coating. Construction is expected to begin early next year in the southeastern city of Changzhou, with production starting in the second half of 2020.
The company said that the investment decision is to keep pace with global electric vehicle battery makers’ capacity increases in China and Europe and to cater to client demands for stable supplies.
In August, SK Innovation said it planned to build an electric vehicle battery factory in China by 2019, under a joint venture with Chinese car manufacturer BAIC Motor and Beijing Electronics.