Korea's SK Innovation liquidates Chinese battery subsidiary
(2024/03/14)
- Reference: 1710390794
- News link: https://www.theregister.co.uk/2024/03/14/sk_liquidates_chinese_battery/
- Source link:
SK Innovation, part of the same Chaebol as chipmaker SK hynix, has liquidated its Chinese battery subsidiary, Blue Dragon Energy.
The move was detailed in an audit report filed with the [1]South Korea Financial Supervisory Service on March 12 revealing that the entity was liquidated last year.
[2]Local media cited the reason for the liquidation as SK Group's desire to streamline operations, as its different business units had overlapping goals.
[3]
"Blue Dragon Energy was an investment entity for the battery business in Greater China. After the split-off of SK On from SK Innovation in 2021, Blue Dragon Energy no longer has a reason to run under SK Innovation, as SK On is active in China," explained an SK Innovation spokesperson, according to reports.
[4]
SK On is SK Group's battery business. It recently [5]brought in former SK hynix CEO Lee Seok-hee to lead the division in an effort to stabilize SK Innovation at a time when it has been losing money. Lee has [6]offered to forgo up to 20 percent of his income until he turns the business profitable, to show how dedicated he is at a time when the EV battery market is tight in South Korea.
[7]Toyota, Samsung accelerate toward better EV batteries
[8]Korea passes tax break-driven 'Chips Act' as protectionism fears mount
[9]South Korea cracks down on offshore e-commerce, with seeming focus on China
[10]Samsung creates a group dedicated to inventing whatever comes next
Before Blue Dragon was nixed, it had planned to establish a battery cell factory, promote partnerships that would secure raw battery materials, and strike joint ventures.
SK Innovation had invested ₩86.4 billion ($65.6 million) in 2018 to get Blue Dragon Energy going, and itself into the Chinese battery market.
Since then, SK Innovation has entered into other battery endeavors in China – including a [11]battery swap business when it became a strategic investor in Blue Park Smart Energy (BPSE). It has also [12]invested in building various battery factories across the Middle Kingdom. ®
Get our [13]Tech Resources
[1] https://dart.fss.or.kr/
[2] https://www.businesskorea.co.kr/news/articleView.html?idxno=212948
[3] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_offbeat/front&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=2&c=2ZfKEak-sXZ8HhC9tuKDiogAAAYU&t=ct%3Dns%26unitnum%3D2%26raptor%3Dcondor%26pos%3Dtop%26test%3D0
[4] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_offbeat/front&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44ZfKEak-sXZ8HhC9tuKDiogAAAYU&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0
[5] https://www.chosun.com/english/companies-en/2023/12/21/C4LDYGWJYBERBNDSWZNTUR4V2U/
[6] https://www.koreatimes.co.kr/www/tech/2024/03/129_368051.html
[7] https://www.theregister.com/2024/03/07/toyota_battery_buyout/
[8] https://www.theregister.com/2023/03/30/korea_passes_its_own_chips/
[9] https://www.theregister.com/2024/03/13/south_korea_e_commerce_crackdown/
[10] https://www.theregister.com/2023/11/28/samsung_future_business_planning_group/
[11] https://skinnonews.com/global/archives/3709
[12] https://www.reuters.com/business/retail-consumer/sk-innovation-invest-1-bln-new-battery-factory-china-2021-09-01/
[13] https://whitepapers.theregister.com/
The move was detailed in an audit report filed with the [1]South Korea Financial Supervisory Service on March 12 revealing that the entity was liquidated last year.
[2]Local media cited the reason for the liquidation as SK Group's desire to streamline operations, as its different business units had overlapping goals.
[3]
"Blue Dragon Energy was an investment entity for the battery business in Greater China. After the split-off of SK On from SK Innovation in 2021, Blue Dragon Energy no longer has a reason to run under SK Innovation, as SK On is active in China," explained an SK Innovation spokesperson, according to reports.
[4]
SK On is SK Group's battery business. It recently [5]brought in former SK hynix CEO Lee Seok-hee to lead the division in an effort to stabilize SK Innovation at a time when it has been losing money. Lee has [6]offered to forgo up to 20 percent of his income until he turns the business profitable, to show how dedicated he is at a time when the EV battery market is tight in South Korea.
[7]Toyota, Samsung accelerate toward better EV batteries
[8]Korea passes tax break-driven 'Chips Act' as protectionism fears mount
[9]South Korea cracks down on offshore e-commerce, with seeming focus on China
[10]Samsung creates a group dedicated to inventing whatever comes next
Before Blue Dragon was nixed, it had planned to establish a battery cell factory, promote partnerships that would secure raw battery materials, and strike joint ventures.
SK Innovation had invested ₩86.4 billion ($65.6 million) in 2018 to get Blue Dragon Energy going, and itself into the Chinese battery market.
Since then, SK Innovation has entered into other battery endeavors in China – including a [11]battery swap business when it became a strategic investor in Blue Park Smart Energy (BPSE). It has also [12]invested in building various battery factories across the Middle Kingdom. ®
Get our [13]Tech Resources
[1] https://dart.fss.or.kr/
[2] https://www.businesskorea.co.kr/news/articleView.html?idxno=212948
[3] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_offbeat/front&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=2&c=2ZfKEak-sXZ8HhC9tuKDiogAAAYU&t=ct%3Dns%26unitnum%3D2%26raptor%3Dcondor%26pos%3Dtop%26test%3D0
[4] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_offbeat/front&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44ZfKEak-sXZ8HhC9tuKDiogAAAYU&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0
[5] https://www.chosun.com/english/companies-en/2023/12/21/C4LDYGWJYBERBNDSWZNTUR4V2U/
[6] https://www.koreatimes.co.kr/www/tech/2024/03/129_368051.html
[7] https://www.theregister.com/2024/03/07/toyota_battery_buyout/
[8] https://www.theregister.com/2023/03/30/korea_passes_its_own_chips/
[9] https://www.theregister.com/2024/03/13/south_korea_e_commerce_crackdown/
[10] https://www.theregister.com/2023/11/28/samsung_future_business_planning_group/
[11] https://skinnonews.com/global/archives/3709
[12] https://www.reuters.com/business/retail-consumer/sk-innovation-invest-1-bln-new-battery-factory-china-2021-09-01/
[13] https://whitepapers.theregister.com/