SK On gets USD 2 billion investment for battery business in Europe.
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SK On gets USD 2 billion investment for battery business in Europe.

SK On will use this investment in its third plant in Europe. It will start production in 2024, with an annual capacity of 30 GWh.

South Korean battery maker SK On announced that it secured a total of USD 2 billion investment from Euler Hermes of Germany, Korea Trade Insurance Corporation, and the Export-Import Bank of Korea.

SK On will use this investment in its third plant in Europe in Iváncsa. The plant is currently under construction. It will start production in 2024, with an annual capacity of 30 GWh. The amount is enough to supply 430,000 electric vehicles per year.

The three agencies will finance SK On by providing credit guarantees and insurance as the company applies for loans in overseas commercial banks.

Euler Hermes and Korea Trade Insurance Corporation will provide insurance worth USD 800 million and USD 700 million, respectively, and the Export-Import Bank of Korea will guarantee a USD 200 million worth of loan. At the same time, the Export-Import Bank of Korea will loan USD 300 million directly to SK.

With this, SK On is set to withdraw the resource sequentially from seven overseas commercial banks starting next month. The long-term loan has a two-year grace period, with an amortization term of 5 years at level payment.

SK On has partnered with many automakers and is growing at a fast pace. Currently, new plants are under construction in the United States, Europe, China, and more. From the 1.7 GWh production capacity in 2017, these new plants will increase the company’s production capacities to 77 GWh by the end of this year, 220 GWh by 2025, and 500 GWh by 2030.

Also Read: Global EV sales to cross 11 million in 2022.

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