Korean SK Innovation's $2.53 billion battery project in China starts construction

[Stranagor]

SK Innovation's $2.53 billion battery project in China starts construction

This is SK Innovation's fourth battery plant in China and its first wholly-owned battery plant there.

cnevpost.com

It's not just local battery makers that are expanding their power battery capacity in China, but foreign companies as well.

South Korea's SK Innovation officially broke ground on a 30-GWh power battery project in Yancheng city, eastern China's Jiangsu province, on January 17, according to an announcement made today by the city government.

The base is one of SK Innovation's largest production bases in the world, and the largest foreign investment project Yancheng has introduced in recent years, according to the announcement.


The project, with a total investment of $2.53 billion, is scheduled for completion of the main body in December this year and installation of equipment to begin in January next year, with annual sales of RMB 20 billion to be added after it goes into operation, the announcement said.

Last November, South Korean media reported that SK Innovation had decided to invest 3 trillion won ($2.5 billion) to build its fourth factory in China and its first wholly-owned battery plant there.

Previously SK Innovation's power battery plants with annual capacities of 7 GWh, 10 GWh and 10 GWh in Changzhou, Yancheng and Huizhou were already in operation.

Among them, the Changzhou plant is a joint venture between SK Innovation and BAIC Group, while the Yancheng and Huizhou plants are joint ventures between it and Eve Energy.

According to SK Innovation's previously announced plans, its annual battery production capacity will expand to 85 GWh by 2023, 220 GWh by 2025 and more than 500 GWh by 2030.

South Korean media outlet Etnews said in September last year, citing sources familiar with the matter, that XPeng Motors had signed a supply contract with SK Innovation in July to supply it with high nickel batteries with 80 percent nickel content.


SK Innovation is expected to supply XPeng with batteries from its third battery plant in China, located in Huizhou, Guangdong province, according to the report.

The plant has an annual capacity of 10 GWh and is capable of supplying 100,000 vehicles with batteries that can travel more than 500 kilometers on a single charge, according to the report.

Headquartered in Guangzhou, Guangdong province, XPeng currently has a factory in Zhaoqing, Guangdong, and is building new factories in Guangzhou and Wuhan, central China.

 

[Stranagor]

Airbus to Build USD944.6 Million Airplane ‘Late-Life-Stage’ Center in China’s Chengdu

www.yicaiglobal.com

(Yicai Global) Jan. 19 -- European airplane maker Airbus is planning to invest CNY6 billion (USD944.6 million) to construct a ‘late-life-stage’ aircraft depot in southwestern China to handle the country’s rapidly ageing fleet by providing a range of services including dismantling and recycling.

Covering an area of 700,000 square meters, the center will be located in Chengdu, southwestern Yunnan province and will be able to accommodate 120 airplanes, The Paper reported yesterday. It is the first ‘lifecycle’ service project by Airbus outside of Europe.

The base will store aircraft and provide repairs, maintenance and airworthiness management while in storage, said Xu Gang, chief executive officer of Airbus China. It will upgrade planes to get them back in service, refit passenger planes into cargo ones and handle second-hand sales. When the aircraft has reached the end of its lifespan, it will offer disassembly services, which includes the removal and resale of usable components and eco-friendly recycling.

Airbus is planning to set up a joint venture with the Chengdu municipal government and the regulators of the city’s Shuangliu district where the Chengdu airport is based later this year, said Hu Yongdong, the firm's deputy strategy, development and operation director in China. The JV will be 70 percent owned by Airbus, 20 percent owned by Airbus’ European partner Tarmac Aerosave and the rest held by the Chengdu government.

China’s fleet is getting older, and each year there is likely to be a 15 percent increase in aircraft over 12 years old, the Leiden, Netherlands-based company said. This leads to challenges for carriers who must now deal with the late life period of airplanes, Xu said.

China is Airbus’ largest market, accounting for 20 percent of deliveries. Over half of the 100 seat-and-above planes in China are made by Airbus, at around 2,100 units.

 

[Shotgunner51]

South Korea's SK Innovation officially broke ground on a 30-GWh power battery project in Yancheng city

That's a gigantic plant, excellent news for SK Innovation and Yancheng city! Power battery demand is soaring throughout the world but competition is also fierce between the 5 tech titans, this is another big move by SK Innovation to compete for global share with LG Chem, Panasonic and CATL, good luck with their 4th plant in China.

 

[Stranagor]

That's a gigantic plant, excellent news for SK Innovation and Yancheng city! Power battery demand is soaring throughout the world but competition is also fierce between the 5 tech titans, this is another big move by SK Innovation to compete for global share with LG Chem, Panasonic and CATL, good luck with their 4th plant in China.

I think they all want a piece from the soon to be gigantic China NEV market. I would not be surprised if sales went beyond 6 million mark easily this year even with subsidies now being phased out.

 

[Shotgunner51]

I think they all want a piece from the soon to be gigantic China NEV market. I would not be surprised if sales went beyond 6 million mark easily this year even with subsidies now being phased out.

Last year (2021) out of 26 millions new cars sold in China, 3.4 million were NEV, your estimation for 2022 is indeed very possible, that's why the tech titans are almost doubling their capacities.

 

[REhorror]

Seems S. Korea and China are both leaders in energy field.
Very good cooperation!

 

[Stranagor]

Seems S. Korea and China are both leaders in energy field.
Very good cooperation!

Lots of new technologies seem to concentrate in East Asia, particularly in the norteast Asian subregion.