SK Group announced 1.32 trillion yuan to develop power battery and other industries

Following the announcement of large-scale investment plans by South Korean enterprise groups such as Samsung and LG, SK, the second largest enterprise group in South Korea, also announced that it will invest in key areas such as power batteries in the next five years
.

On May 26, according to SK official news, the group will invest 247 trillion won (about 1.
32 trillion yuan) in the next five years to support the company's business in the fields of semiconductors, EV batteries and biopharmaceuticals
.
Among the overall investment scale, investment in South Korea reached 179 trillion won
.

It is reported that SK Group plans to invest 142.
2 trillion won (about 763.
3 billion yuan) in semiconductors and materials by 2026; 67.
4 trillion won (about 361.
8 billion yuan) in green businesses such as electric vehicle batteries; and 5G digital investment.
24.
9 trillion won (about 133.
7 billion yuan); 12.
7 trillion won (about 68.
2 billion yuan) invested in the field of biomedicine
.

SK Group believes that the core of the fourth industrial revolution such as artificial intelligence (AI) and digital transformation (DT) is semiconductors, so it decided to invest more than half of the total investment scale of 247 trillion won in semiconductors and semiconductor materials
.
The investment is mainly focused on building a semiconductor ecosystem to enhance the competitiveness of semiconductors, including the establishment of the Yongin semiconductor cluster, and the addition of semiconductor Fabs, special gases and wafers and other materials, components, and equipment-related facilities
.

In addition, in order to achieve the goal of reducing 200 million tons of carbon by 1% of the global carbon emission target (21 billion tons) based on 2030, the SK Group will invest in electric vehicle batteries and battery materials, hydrogen, wind energy, and renewable energy.
Invest 67.
4 trillion won in green future industries and implement NET ZERO ahead of schedule
.
The investment amount is mainly used to add power battery and diaphragm production equipment, including hydrogen and other renewable energy production equipment; or to invest in global companies as a source of revenue to enhance green energy technology capabilities and competitiveness
.

According to the previous plan of SK Group, the annual production capacity of SK On battery will be expanded to 85GWh in 2023, 220GWh in 2025, and more than 500GWh in 2030
.

According to the latest data from research firm SNE Research, in the first quarter of 2022, the total installed capacity of electric vehicle batteries registered globally was 95.
1GWh, nearly doubling year-on-year
.
In terms of market share, the total market share of LG New Energy, SK On and Samsung SDI, the top three in Korea, was 26.
3%, and the market share declined.
Among them, the installed capacity of SK on was 6.
3GWh, ranking fifth in the world
.
South Korea's major battery maker's market share fell 6.
9% year-on-year in the first quarter due to strong growth from Chinese rivals
.

It is worth noting that in order to accelerate the development of the new energy industry and occupy more market shares, in addition to SK Group, Samsung and LG Group have also recently announced that they will make huge investments in various fields
.

On May 26, South Korea's LG Group released a medium and long-term strategic report.
According to the plan, LG Group will first invest more than 10 trillion won (about 53 billion yuan) in batteries and battery materials within five years
.
Among them, LG Chem, a subsidiary of LG Group, plans to invest 1.
7 trillion won (about 9.
01 billion yuan) in battery materials such as cathode materials, separators, and carbon nanotubes by 2026, with the goal of becoming the world's No.
1 comprehensive battery materials company ; LG New Energy, a battery company owned by LG Chem, plans to make additional investments at its Ochang factory in North Chungcheong Province to produce cylindrical batteries
.
At the same time, it will focus on the development of next-generation batteries such as all-solid-state batteries and lithium-sulfur batteries, and develop new businesses such as the BaaS (Battery asa Service) platform
.

On May 24, Samsung Electronics announced that it will invest 450 trillion won (about 2.
37 trillion yuan) in the fields of chips and biotechnology in the next five years
.
At the same time, Samsung SDI announced that it will jointly build an electric vehicle battery manufacturing plant with Stellantis Group in Kokomo, Indiana, USA.
The plant is planned to be put into operation in 2025, with an initial annual production capacity of 23GWh, and the annual production capacity will increase to 33GWh in the next few years.
The established joint venture invested more than US$2.
5 billion, which may gradually increase to US$3.
1 billion in the future
.