SK On, a subsidiary of SK Innovation, has raised KRW 2.8 trillion ($2.5 billion) in paid-in capital. This includes KRW 2 trillion from SK Innovation andKRW 0.8 trillion from Korea Investment Private Equity.
SK Innovation plans to invest KRW 1 trillion this month and the remaining amount next year in order to enhance SK On’s corporate value and meet the anticipated mid to long-term increase in demand for electric vehicle (EV) batteries.
SK On is expanding its business by securing orders from major companies such as Ford, Hyundai Motor, and Volkswagen, and SK Innovation believes that the additional investment will help accelerate the company’s growth. The direct investment by the parent company is also expected to stabilize the battery business market and improve shareholder value.
On November 30, SK Innovation had announced that it would be raisingKRW 1.3 trillion from financial investors such as Korea Investment PE, and this investment is a continuation of that announcement. Korea Investment PE may also invest an additionalKRW 0.5 trillion in SK On next year. SK On plans to continue seeking investment and may also attract additional external investors in the future.
The company has been focusing on building global production bases in the United States and Hungary and recently signed a memorandum of understanding with Hyundai Motor Group for cooperation in supplying EV batteries in North America as part of its efforts to secure a strong position in the EV battery market.