Innovation will start test production of U.S. electric vehicle battery plants in the first half of next year as scheduled. Although confusion in the material industry is growing due to the prolonged battle between LG Energy Solutions and batteries, there is no need to worry too much. SK Innovation is planning to commercially produce batteries for electric vehicles according to the release schedule of new cars by Volkswagen and Ford.

According to industries on the 27th, SK Innovation is going to test-produce batteries at its first plant in Georgia in the U.S. in the first half of 2017. In the U.S. market, SK Innovation is building 1st and 2nd battery plants that will be installed in 200,000 electric vehicles annually.

Products that are going to be produced at Plant 1 are medium and large pouch type NCM811 (nickel 80%, cobalt 10%, manganese 10%) batteries. It is a high-nickel product with an 80% nickel content that affects energy density. This product is going to be used in 'ID.4', an electric sport utility vehicle (SUV) in Volkswagen, Germany.

SK Innovation is planning to receive battery materials according to schedule of battery test production. To this end, it is heard that the company and material companies discussed ways to apply battery materials.

"The construction of the plant is nearing the end of the 90 percent range," said a representative for SK Innovation. "We will conduct a full-scale test to mass-produce batteries by receiving products from the first half of this year."

However, confusion is growing in the material industry because SK Innovation is having a prolonged battery lawsuit with LG Energy Solution. This is because the U.S. International Trade Commission (ITC) will make a final conclusion on February 10 next year ahead of the test production schedule for the first plant. It is heard that the industry sent a complaint to SK Innovation's battery purchasing team due to the prolonged legal battle.

Regarding this, an official from SK Innovation said, "Although there are inquiries about the supply of battery materials, we have even announced investments in the construction of the second plant of batteries and there will be no problem in supplying batteries for electric vehicles."

Construction of the second plant began in July. SK Innovation is planning to supply batteries for NCM that are applied to U.S. Ford's electric trucks. It is going to mass-produce electric vehicle batteries that increase nickel content to 90% in 2023.

SK Innovation held a board meeting on the 18th and issued 1.1 trillion won worth of bonds to finance the construction of the second plant. SK Innovation is planning to use this fund to order battery-related equipment and start commercial production in the first quarter of 2023.

An official from SK Innovation said, "The construction of the plant will be carried out in line with the schedule of mass-production of batteries."