Export-Import Bank of Korea announced Friday that it will provide $1.5 billion in financial assistance to a US-based battery manufacturing joint venture between SK On and Hyundai Motor Group.
During a Thursday visit to the venture’s plant under construction in Bartow County, Georgia, the state-run bank’s CEO, Yoon Hee-sung, pledged an $800 million loan and a $700 million guarantee for the company.
Scheduled to begin operations late this year, the facility will produce up to 35 gigawatt-hours of battery capacity annually, or enough to power approximately 300,000 electric vehicles.
The financial support aims to enhance the SK-Hyundai joint venture’s competitiveness in the US electric vehicle market, particularly as global EV demand faces challenges, the bank said.
"We expect the competitiveness of Korean businesses across the EV value chain to improve by forming an alliance in which Korean automakers integrate batteries with proprietary technology from another Korean company," said Yoon.
"The Export-Import Bank will continue to strengthen cooperation between industry and finance, providing comprehensive support to boost the competitiveness of strategic tech industries, such as batteries."
To mitigate uncertainties in industry and trade, heightened by the second Donald Trump administration in the US, the state-run bank stated that it plans to provide proactive financial support for the global expansion of Korean industries.
forestjs@heraldcorp.com
