[Alpha Biz= Kim Jisun] SK On announced on the 20th that it will exchange equity stakes with China’s EVE Energy to reorganize its China operations and transition to a single-operator model for its battery plants.


Under the agreement, SK On will transfer its entire 49% stake in EVE United Energy (EUE) to EVE Power Hong Kong. In return, EVE Power Hong Kong will transfer its full 30% stake in SK On Jiangsu (SKOJ) to SK On.


The stake held by EVE in SKOJ is valued at KRW 434.7 billion, while SK On’s stake in EUE is valued at KRW 475.9 billion. The difference will be paid to SK On by the parent company of EVE Power Hong Kong.


As a result, EUE will become a wholly owned subsidiary of EVE, while SKOJ will transition into a 100% SK On–owned plant.


SK On stated that the stake swap will allow the company to focus production allocation on newer, more advanced facilities to improve profitability. The restructuring is expected to enhance economies of scale and operational efficiency.


SKOJ, located in Yancheng, China, includes Plant 1 with 10 GWh of annual capacity (commercial operation in Q1 2021) and Plant 2 with 17 GWh (commercial operation in Q3 2022). EUE, located in Huizhou, also has a production capacity of about 10 GWh, beginning commercial operations in Q1 2021.

 

 

 

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