SEOUL, May 31 (Korea Bizwire) – SK Innovation Co., South Korea’s top oil refiner, said Wednesday that it plans to spend 10 trillion won (US$8.91 billion) in the battery and other non-refining sectors by 2020 to reshape its business portfolio and nurture new revenue sources.
In a regulatory filing, SK Innovation said the investment will help it solidify its status as a leading energy and chemicals firm in the world.
Earlier this week, SK Innovation said it aims to secure a 30-percent share in the global battery market by 2025 with its battery output capacity to be raised to 10GWh in 2020 from its 1.1GWh last year.
The energy company said earlier it would double its electric vehicle (EV) battery production capacity in order to meet growing demand. SK Innovation previously doubled its EV battery-making capacity in 2015. The company said it has an order backlog that will keep it busy for seven years.
SK Innovation has been pushing into the EV battery business since 2008 as part of an effort to expand its global outreach. The company provides lithium-ion batteries for EVs produced by Kia Motors and China’s state-run Beijing Automotive Industries Holdings.
SK Innovation also said it will boost its petrochemicals business which covers high-end and high value-added products and lubricants. In order to achieve that goal, SK Innovation said it will shoot for more mergers and acquisitions.
Earlier this year, SK Innovation decided to take over Dow Chemical Co.’s ethylene acrylic acid (EAA) business for $370 million in a bid to diversify its business portfolio.