SK On said on Wednesday that it will spend 1.5 trillion won to build a third factory at its battery production facility in South Korea.
The battery maker will build the new factory on 44,125 meter-square of land at the facility.
It is SK On’s largest spending plan to date for its home country.
The third factory will be completed in 2025 and will be gradually upgraded through equipment changes and process improvement by 2028 to have an annual production capacity of 14GWh.
This means SK On’s total production capacity in South Korea in 2028 will be around 20GWh, enough to power 280,000 units of electric vehicles a year.
SK On is likely expanding its domestic capacity to service one of its major customers Hyundai Motor Group.
The South Korean battery maker currently has a global battery production capacity of 89GWh, with factories in the US, Europe, and Asia.
The third factory in Seosan is also expected to have a 30% increase in production speed thanks to the application of new smart factory solutions.