 |
| Image of Blue Park Smart Energy Technology's battery swap station in China, provided by SK Innovation, Thursday. SK said it acquired a 13.3 percent stake in the Chinese company. / Courtesy of SK Innovation |
By Baek Byung-yeul
SK Innovation has acquired a stake in a Beijing-based company that sells recharged batteries that can be swapped between electric vehicles (EVs), the energy and chemical arm of SK Group said Thursday.
The company said it acquired a 13.3 percent stake in Blue Park Smart Energy Technology (BPSE), a subsidiary of Beijing Automotive Group.
SK Innovation said demand for battery swap stations is expected to increase as the swapping system is faster than recharging the batteries themselves, which could take hours. BPSE is a leading battery swap station operator authorized by the Chinese government.
SK Innovation said the stake acquisition, which was inked in the form of a non-disclosure agreement, is part of the company's move to expand into the battery service business in China, which accounts for more than half of the global EV market. SK Innovation has been cooperating with Beijing Automotive Group since the two companies established a battery-manufacturing joint venture in 2013.
"The two companies agreed to cooperate in the Battery-as-a-Service business (BaaS). We expect to create a synergy effect with the battery business we have been doing in China," the company said.
In addition to its EV battery-manufacturing joint venture, SK Innovation has pursed new opportunities in the battery business. By offering repair, rental, recharge, reuse and recycling of batteries, the company has said it aims to become one of the top BaaS providers.
The battery swap station business has big potential as there has been increasing demand from electric taxis and other EVs. Also, the battery swap business can be expanded into battery rental and reuse services, SK Innovation said.
Given a battery pack accounts for a quarter of the total cost of an EV, the battery swap business could also help consumers save money, because customers can purchase a vehicle and a battery pack separately.
Ji Dong-seop, chief of SK Innovation's battery business, said the cooperation between the two companies can advance the business paradigm of the EV industry.
"The BaaS business model, a combination of SK Innovation's high-quality and long-lasting battery development technology and BPSE's capability in swapping batteries, will shift the business paradigm of the EV industry," Ji said, adding that the BaaS business model will play a pivotal role in improving the company's environmental, social and corporate governance (ESG) value.
