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SK Innovation to spin off battery business and E&P business

SK Innovation has decided to spin off its battery production and exploration & production (E&P) business as independent companies. SK Innovation will be a holding company that plays the role of the “Green Portfolio Designer & Developer” and puts greater emphasis on the improvement of the enterprise value.

The upcoming spin-off of two businesses will take place in the form of simple division and split-off, wherein SK Innovation will own the entire issued stocks of the new companies. The assets and liabilities belonging to the two businesses will be transferred to the newly established company, respectively.


SK Innovation’s EV battery plant located in Seosan, South Korea

The SK Battery Co., Ltd. (tentative name) will be responsible for the medium-to-large-sized EV batteries, Battery-as-a-Service (BaaS), and Energy Storage System (ESS). The SK E&P Co., Ltd. (tentative name) will be in charge of oil exploration and production business, and the Carbon Capture & Storage (CCS) business.

SK Innovation said the spin-off will be a turning point for securing global competitiveness in the battery business. The battery business aims to grow into a global top player based on its battery order backlogs of “1 Terawatt + α.” (Earlier post.)

Currently, the company holds an annual battery production capacity of 40GWh, produced in various countries, including South Korea, the United States, China, Hungary. The company plans to quickly expand its production capacity to 85 Gwh by 2023, 200 Gwh by 2025, and 500 Gwh by 2030. Moreover, the company is growing at a rapid pace, with the recent announcement to form a joint venture with Ford. (Earlier post.)

The company will expand the battery application market to products such as Energy Storage System (ESS), flying cars, robots, and others, and also provide services such as the Battery-as-a-Service (BaaS) platform.

Meanwhile, the battery business will continues Life Cycle Assessment (LCA) and improvement in order to complete its ESG management. Based on this, it has set the goal to join the RE100 by 2030 and achieve Carbon Net Zero by 2035.


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