SK On Yancheng Factory Fire: Production Delay

On November 21st, as reported by Yonhap News Agency, a sudden fire incident occurred at the newly established electric vehicle (EV) battery manufacturing facility of SK On, a prominent South Korean battery company, located in Yancheng, China.

The incident took place at the SK New Energy factory in Yancheng, Jiangsu Province, China, around 2:50 pm on November 20th. Swift response efforts successfully extinguished the fire, and fortunately, no injuries were reported. The investigation into the root cause of the fire and the extent of the damage is currently underway.

This facility, SK On's second in Yancheng, had recently completed construction and was in the process of preparing for large-scale EV battery production, conducting trial operations. Initially slated for production commencement between April and June 2024, the timeline for initiating production is presently uncertain, pending the conclusion of the fire investigation.

It is noteworthy that SK On's first Yancheng facility operates as a collaborative venture with a Chinese battery manufacturer. In contrast, the second facility, where the fire incident occurred, is anticipated to be autonomously operated by SK On. With an annual production capacity of 33 gigawatt-hours (GWh), this plant is poised to become SK On's most substantial battery manufacturing facility in China.