SK On, EVE Energy Swap Stakes Worth 400 Billion Won in Chinese Joint Ventures

(Seoul=Yonhap Infomax) Hak Seong Kim – SK On Co., the battery manufacturing unit of South Korea's SK Innovation Co. [096770], announced on the 20th that it will swap stakes in two Chinese joint ventures with EVE Energy Co., a major Chinese battery maker.

SK On and EVE Energy have jointly operated two battery plants: SK On Jiangsu (SKOJ) in Yancheng, Jiangsu Province, and Huizhou EVE United Energy (EUE) in Huizhou, Guangdong Province.

Under the agreement, SK On will transfer its 49% stake in EUE to EVE Energy, while EVE Energy will hand over a 30% stake in SKOJ to SK On. The stakes are valued at approximately 400 billion won ($295 million), and EVE Energy will pay SK On an additional 40 billion won ($29 million) in cash to settle the difference.

Upon completion of the transaction, SK On will own 100% of SKOJ, while EVE Energy will hold full ownership of EUE.

SK Innovation stated that the purpose of the deal is to "rebalance SK On's portfolio through a swap of Chinese joint venture stakes."

Moon Sung-jun, head of communications at SK On, said, "With the launch of large-scale overseas plants, we are optimizing operations by allocating production to new factories equipped with the latest facilities and economies of scale."

The annual production capacity of the EUE and SKOJ plants is 10 GWh and 27 GWh, respectively. SK On's projected global production capacity for this year is 192 GWh.

hskim@yna.co.kr

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