SK Innovation will initially invest US$1.148 billion in SK Battery Hungary (SKBH) to build its third European factory in Iváncsa, Hungary, with a production capacity of 30 GWh per year. This scale of output would supply batteries for approximately 430,000 cars based on 70 kWh per charging with a more than 400 km range.

SK’s first and second European plants are also located in Hungary (Komárom); the expected third plant will be the largest.

Construction will begin in the third quarter this year and will last until 2028, with a total of US$2.29 billion ultimately to be spent in construction. The company plans to finance the project externally according to the construction schedule.

SK Innovation’s 1st EV battery plant in Europe is located at Komarom, Hungary

Located 50 km southwest of Budapest, Iváncsa is equipped with smooth logistics infrastructure, such as railroads and roads; an abundant workforce, as it is near Budapest; and all other sorts of infrastructure, which led the city to become the site of SK Innovation’s new project.

With the investment decision this time, SK Innovation comes closer to its mid- and long-term goal to become a leading global EV battery company with a production capacity of “125 GWh+ per year by 2025.”

With this investment, the company will be able better to meet market demands in Europe, which are expected to increase more than six times to 256 GWh in 2025 from the current 41 GWh. Focusing on the EV battery industry, which fits the best the European Green Deal policy, SK Innovation plans to expedite its vision of “Green Balance 2030,” the core of its ESG management.