Exclusive: SK Innovation in talks to set up EV battery JVs with Volkswagen, China partners

SEOUL (Reuters )-
SK Innovation Ltd is negotiating to build an independent battery
With a joint venture with Volkswagen AG and a Chinese partner, South Korean petrochemical producers are actively expanding their participation in electric vehicles.
The company confirmed negotiations with the German public for the first time, and told Reuters that the two were discussing co-building factories.
The company also said it was at the forefront of agreeing to set up a factory in China with undisclosed partners.
The negotiations were held at the same time as electric vehicle battery manufacturers increased capacity to cope with rapid growth
As automakers compete to develop cars other than gasoline to meet increasingly stringent emissions regulations around the world, demand is growing.
SK Innovation, South Korea\'s largest oil refinery, is a latecomer to the market led by compatriots LG Chem Co. , Ltd. and Samsung SDI Co. , Ltd. , as well as Panasonic, Japan.
Since mass production began in 2012, customers include Daimler and Volkswagen in Germany.
YS Yoon, president of SK Innovation battery business, said in an interview: \"compared with competitors, we have been matching or surpassing investments in the field since last year . \".
\"We are trying to find the right time for big investments.
South Korea\'s third largest SK Group-
As demand for memory chips slows, the largest enterprise group is paying more and more attention to electric vehicle batteries
Production Unit SK Hynix
To 2022, SK Innovation program costs 4.
51 trillion won.
3 billion) to increase the battery capacity of electric vehicles.
It broke ground last month for $1.
7 billion plant in the United States mainly supplies lithium-
Mass Ion batteries.
It has also built two factories in Hungary.
\"Our strategy is to keep up with technological advances by building relationships with some of our key customers,\" Yoon said . \" He added that \"no decision has been made\" on joint ventures with Volkswagen\"
The joint venture will be the first cooperation between Volkswagen, one of the world\'s largest automakers.
Investment in battery production, similar to joint battery investment by Panasonic and the United StatesS.
Electric car maker Tesla, analysts say.
\"We are considering investing in a battery manufacturer to strengthen our electrified offensive and build up the necessary knowledge --
Volkswagen said in a statement to Reuters.
Volkswagen chief executive Herbert Diess said on the 3 th that the automaker is \"looking closely at whether it is possible to participate in our own battery manufacturing facilities in Europe.
Other suppliers of Volkswagen include LG Chem, Samsung SDI and China Contemporary Amperex Technology Co. , Ltd.
\"There are too many demands on batteries from the public,\" Yoon said . \".
\"So I think it\'s natural for Volkswagen to have multiple suppliers even if they have joint ventures with some suppliers.
In addition, SK Innovation plans to sign an agreement soon to set up a second electric vehicle battery plant in China, the world\'s largest electric vehicle market, but no local partners have been identified, Yoon said.
In August, the company set up its first Chinese factory in a joint venture with Beijing Electronics Holding Co. , Ltd. and BAIC Automobile Co. , Ltd. with an investment of 5 billion yuan (US $744 ).
30 million) until 2020.
SK Innovation plans to start construction in 2016, but construction was delayed because electric vehicles with Korean batteries were not included in the list of government electric vehicles eligible for subsidies.
\"We want the Chinese market to open in 2021,\" Jay Rhine, head of battery research and development at SK Innovation, said in another interview when subsidies were gradually canceled.
At the same time, SK Innovation in the industry
Panasonic may say it is working on a cobalt-free battery.
This mineral is mined under harsh conditions and the price fluctuates greatly.
Rhine said the company plans to produce 5% of cobalt-containing batteries in 2022 starting from the current 10%.
Cobalt is mainly mined in the Democratic Republic of the Congo, but SK Innovation is also sourcing cobalt from Australia and extracting minerals from waste batteries, Yoon said.
\"I don\'t expect us to need to get new cobalt after 2025,\" Yoon said . \".