SK Innovation closes its Chinese battery subsidiary
Korea's SK Innovation, which is owned by Korea's SK Group, has liquidated its Blue Dragon Energy division in order to streamline operations in China.
The news emerged in a regulatory financial filing last week. Industry observers speculated that the closure was made because SK Group has a range of overlapping interests in the Chinese battery space and needs to consolidate.
In short, SK Innovation had invested USD 65.6 million in 2018 to launch Blue Dragon Energy, with plans to establish a battery cell factory, form strategic partnerships and invest in local firms. But at the same time it had created SK on as its own battery subsidiary, which was split off in 2021.
It appears that SK Innovation concluded there was too much overlap and it was time to consolidate by closing Blue Dragon.
A spokesperson said: “Blue Dragon Energy was an investment entity for the battery business in Greater China. After the split-off of SK on from SK innovation in 2021, Blue Dragon Energy no longer has a reason to run under SK innovation, as SK on is active in China."
