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Fire Erupts at SK On’s EV Battery Factory in China, Operations Schedule Faces Uncertainty

South Korea
s 096770.KO Mid and Small Cap 2000
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A fire ignited at the battery factory for electric vehicles operated by SK On in Yancheng, Jiangsu Province, China, raising concerns about potential disruptions to the plant’s operational timeline. SK On had been gearing up to commence operations at the facility.

On the 20th, SK On reported that a fire broke out at Yancheng Factory 2, currently in the testing phase, around 2:50 pm (local time). Emergency response teams, including fire trucks, were swiftly dispatched to the scene to conduct firefighting operations. An official from SK On stated, “We suspect the fire originated within a pipe within the factory.” They further reassured that all employees were safely evacuated, and no casualties were reported. Collaborating with local fire authorities, SK On is actively investigating the cause of the fire and assessing the extent of the damage.

Yancheng Factory 2, where the fire occurred, had recently completed construction and was undergoing test operations in preparation for mass production slated for the second quarter of 2024. While the likelihood of a delay in the full-scale operation of the factory is high, SK On asserts that a definitive timeline for mass production will be confirmed post-investigation. In 2021, SK On had announced an investment of approximately 3 trillion won for the construction of this new factory in Yancheng.

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