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SK On, a leading electric vehicle (EV) battery maker, has successfully secured a $2 billion loan from three major Korean banks, providing crucial funding for its ambitious expansion plans in the United States. The financial boost comes as SK On aims to solidify its presence in the rapidly growing global EV market.

The loan agreement was signed with Korea Development Bank (KDB), Export-Import Bank of Korea (Kexim), and Industrial Bank of Korea (IBK). The funds are designated specifically for the construction of SK On's new manufacturing facilities in the US, where the company is partnering with major automakers like Ford and Hyundai Motor Group.

The investment comes at a critical time for SK On, as it races to meet the surging demand for EV batteries. The company already operates one battery plant in Georgia and is building two more in Kentucky and Tennessee in collaboration with Ford. Another plant is under construction in Georgia with Hyundai. Once these plants are operational, SK On's total annual production capacity in the US will reach a staggering 150 gigawatt-hours (GWh), enough to power an estimated 1.2 million to 1.5 million EVs per year.

The loan also signals the Korean banks' confidence in SK On's growth potential and the long-term prospects of the EV battery market. The financial support will enable SK On to expedite its US expansion, contributing to job creation and technological advancement in the region.

This significant investment follows SK On's previous financial maneuvers, including the $1.6 billion and $500 million equity investments raised from MBK Partners and SNB Capital earlier in 2023. These combined funds underscore SK On's commitment to accelerating its growth trajectory and securing a leading position in the global EV battery industry.