SK Innovation Secures Euro Subsidy for EV Plant in Hungary
SK Innovation announced that it will receive 90 million Euros from the Hungarian Government for the construction of its second battery plant in Hungary. SK Innovation has invested approximately KRW 945 billion to build its second European plant in Komárom, Hungary, with an annual production capacity of about 10 gigawatt hours. With the construction being set for completion within this year, the plant will begin commercial operation next year. The 90-million-euro subsidies have been granted regarding the anticipated positive effects on the local economy and employment from the operation of the second EV plant in Hungary.
For an EU member to grant large subsidies to a company, an approval from the European Commission is required. The European Commission has finally approved the Hungarian government’s subsidy plan for SK Innovation, after a 10-month review since last September.
This is an exceptional case for the European Commission, which is known to be very strict about giving approvals, to grant such huge amount of subsidy to a Korean company in such a short period. The European Commission’s decision was based on a conclusion that SK Innovation’s new battery plant will contribute to balancing economic development among EU members and creating more jobs. SK Innovation is now recognized not only for its contribution to economic development and promoting customer welfare, but also as a partner in the European Union’s eco-friendly policies.
The Hungarian Government reportedly pointed out to the European Commission that SK Innovation has already established a solid client base including Volkswagen, Daimler AG, BAIC Group, Hyundai Motor, and KIA, based on its technological prowess. SK Innovation is also leading the market with an advanced “High Nickel” technology, which determines the performance of lithium-ion batteries.
Announcing its vision and future strategies on the recent ‘Story Day,’ SK Innovation said it successfully secured an order backlog of a terawatt-hour, which is more than enough to power 14 million electric vehicles. As a result, SK Innovation has become the global top 3 company in the scale of order backlog.