SK Innovation split off battery business in October.

SK Innovation is planning to split off its battery and oil business units in October.

SK Innovation will become the holding company of the two new subsidiaries.

SK Battery and SK E&P will be formed on October 1, after the move is approved by shareholders on August 16. The board of SK Innovation proposed the move on Tuesday.

SK Battery will focus on electric car batteries, battery-as-a-serivce and energy storage system businesses.

SK E&P will focus on oil and carbon capture and utilization businesses.

Back in July, SK Innovation had said it believes its battery business was under-valued.

This was from the company’s legal battle with LG Energy Solution over alleged trade secret leaks, which has now been settled.

SK Innovation currently has a battery production capacity of 40GWh per year from its facilities in the US, China, Hungary and South Korea.

It is aiming to expand this to 85GWh by 2023 and 200GWh by 2025.

It also formed a joint venture with Ford called Blue Oval SK recently.

SK Innovation is hoping to turn a profit from its battery business this year.