SK Innovation to spin off battery business and E&P business
SK Innovation announces that its Board of Directors have decided to spin off the battery and exploration and production (E&P) business as independent companies, creating an autonomous management system for each.
The upcoming spin-off of two businesses will take place in the form of simple division and split-off, wherein SK Innovation will own the entire issued stocks of the new companies, a press release reads. The SK Battery Co., Ltd. (tentative name) will be responsible for the medium-to-large-sized EV batteries, Battery as a Service (BaaS), and Energy Storage System (ESS). The SK E&P Co., Ltd. (tentative name) will be in charge of oil exploration and production business, and the Carbon Capture & Storage (CCS) business. “The upcoming spin-off will allow the businesses to create a management system that fits their business characteristics, and the decision was made to raise the overall expertise and competitiveness. Attracting investment and increasing business value in each business will provide more flexibility to quickly and comprehensively respond to various management environments,” says SK Innovation’s Chairman of the Board Kim Jong-hoon in the press release. SK Innovation said the spin-off will be a turning point for securing global competitiveness in the battery business. It was announced during SK Innovation’s Story Day event on the first of July that the battery business aims to grow into a global top player based on its battery order backlogs of “1 Terawatt + α.” Currently, the company holds an annual battery production capacity of 40GWh, producing from various countries, including South Korea, the United States, China, Hungary. The company has also revealed its plan to quickly expand its production capacity to 85Gwh by 2023, 200Gwh by 2025, and 500Gwh by 2030.