SK Innovation Ends Battery Joint Venture With Continental
SK Innovation of South Korea announced that it will end a battery-pack joint venture with German partner Continental AG.
The cancellation of this joint venture is believed to be due to slow growth in demand for electric cars in Europe.
According to Yonhap News:
“In a regulatory filing, SK Innovation said it will buy a full stake in the Korean branch of the joint venture at 14.48 billion won (US$13.87 million) via off-board transactions within this year to dissolve it.”
SK Innovation released this statement:
“We decided to withdraw from the battery venture with Continental due to the lower-than-expected synergy because clean diesel vehicles were selling more than electric vehicles in the European market. We will continue to research and develop batteries for electric vehicles in the future.”
The ending of this joint venture does not impact SK Innovation’s work in South Korea where it produces the battery that powers the 2015 Kia Soul EV.
Source: Yonhap News