SK Innovation acquires stake in China's battery swap biz operator

[Photo provided by SK Innovation Co.]

South Korea’s battery producer SK Innovation Co. invested in a Chinese battery service provider to expand its battery business in China.

The company announced Thursday that it acquired a 13.3 percent stake in Blue Park Smart Energy Technology Co. (BPSE), a battery service subsidiary under Beijing Automotive Group. They did not disclose the deal value.

SK Innovation said it will expand its battery business to battery rental, charge, reuse and recycle based on its competitiveness in high-performing and long-lasting batteries. The new investment is also aimed at creating synergy effect with its battery producing business. It established a battery manufacturing joint venture with Beijing Automotive Group in 2013.

BPSE is a state-licensed company operating battery swap stations for taxis and ride-hailing service providers. It has been at the forefront of the battery service business in China and led the establishment of national standards for replaceable batteries.

[Photo provided by SK Innovation Co.]

The two companies will cooperate in operating battery replacement stations where drivers can replace their used-up batteries with fully-charged ones to save battery charging time. SK Innovation said that the batteries at the stations can also be used for energy storage system to help cities build a distributed power supply system.

SK Innovation that runs the largest number of gas stations in South Korea expects that it could adopt the battery service business in Korea.

“We are committed to bring a new paradigm in the future electric vehicle market through the battery service business model that combines our battery technologies and BPSE’s battery swap business know-how,” said Ji Dong-seop, SK Innovation’s battery division chief, adding that the business engaging in battery reuse and recycle will also contribute to strengthening the company’s environment, society and governance (ESG) elements.

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