Continental Considers Ending Lithium-Ion Battery Joint Venture With SK Innovation
Continental CFO Wolfgang Schaefe recently stated in a telephone interview that its partnership with South Korean lithium-ion battery manufacturer SK Innovation could come to an end by the end of this year.
Both companies established a joint venture seeking a place in the automotive market, but as it turns out demand is lower than expected (for EVs and all kinds of hybrids).
Wolfgang Schaefer commented:
“The market for battery cells is less attractive than we thought two to three years ago.”
For now, Continental wrote down 77.9 million euros ($97.4 million) of the venture’s value in the third quarter.
This is just part of a planned 270 million euro investment by Continental and SK Innovation over five years in the joint venture.
Source: Automotive News