SK On has delayed the expansion of its Seosan Plant 3, which had been scheduled for the first half of next year.
On the 31st, SK Innovation, the parent company of SK On, disclosed that SK On had planned to invest 1.7534 trillion won by today in replacing equipment at Seosan Plant 2 and expanding Seosan Plant 3, but in reality executed only 936.4 billion won.
Earlier, in 2023, SK On disclosed that it would invest 1.7534 trillion won in the Seosan plant. It planned to modify the production line at Seosan Plant 2 and expand Seosan Plant 3, aiming to operate Seosan Plant 3 from early next year. Through this, Seosan Plant 3 was expected to secure an annual production capacity of 14 gigawatt-hours (GWh) by 2028.
However, weak demand for electric vehicles delayed the expansion plan. The total investment originally planned has not been reduced, but the amount invested so far is only 936.4 billion won. Accordingly, SK On set the investment end date as Dec. 31, 2026, a one-year extension from Dec. 31, 2025.
An SK On official said, "We flexibly adjusted the amount and timing of investment in Seosan Plant 3 in line with changes in market demand," and noted, "This is a deferral, not a withdrawal of investment."