At the beginning of this year, SK Continental E-motion—the joint venture between SK Innovation, and Continental—closed the transaction and officially started operations following the approval of the relevant authorities. (Earlier post.) SK Continental E-motion will jointly develop, produce and distribute lithium-ion based battery systems for cars and light commercial vehicles.
SK Continental E-motion has started working on initial development programs in the 48V mild hybrid segment as well as for commercial vehicle applications.
SK Innovation has a 51% stake in the new company while Continental owns 49%. Both Continental and SK Innovation plan to invest about €270 million (US$359 million) in SK Continental E-motion for the next five years.
SK Innovation and Continental say that their individual strategies will not be affected by their joint management of this new venture and both companies will continue to supply their customers in the automotive industry with their complete product range.
The company is headed by Robert Lee as chief executive officer (CEO), former SK Innovation and the position of chief financial officer (CFO) is held by Marcus Heinemann, former Continental. Initially, SK Continental E-motion will employ around 220 people worldwide, sourced in almost equal proportions from the two partner companies. The venture, which is managed operationally from Berlin, began operations on 2 January 2013. The fully integrated teams will work on a global development footprint based at locations in Berlin, Germany and Daejeon, Korea.
All relevant authorities have given unrestricted approval to the antitrust application submitted by the two companies. All provisions of the agreement signed on 23 July 2012 came into force on completion of the approval process.