A South Korean company unveiled plans Monday to expand a Georgia manufacturing plant worth almost $1 billion.
SK Innovation will double the size of its operations in Jackson County along I-85, where it is building a 2.4 million square-foot factory to make batteries for electric vehicles. The expansion will increase SK’s investment from $1.67 billion to $2.5 billion, state officials said Monday.
SK cited projected higher demand for electric vehicles as the reason for its expansion, even as the coronavirus pandemic has clobbered the automotive industry.
U.S. new car sales appear to be down about 50% through April on a yearly basis, according to Cox Automotive.
SK plans to capitalize on the likely future of autos. It has contracts to supply batteries to Kia Motors and Volkswagen.
“With this investment, SK Innovation’s battery business will significantly contribute to not only the local Georgia economy, but the development of the U.S. [electric vehicle] industry.” CEO Kim Jun said in a statement.
The auto industry is slowly resuming operations in the Southeast after a shutdown of more than a month. Kia was expected to restart production at its West Point plant today. Volkswagen had planned to resume work in Chattanooga, Tenn., Sunday, but postponed its return. BMW restarted work at its Greer, S.C., plant today at half-capacity.
SK plans to open the first phase of its plant, located in the city of Commerce, in 2022, according to a company spokesman. Construction on the second phase is expected to begin in July with an estimated completion date of 2023. The project could create up to 6,000 jobs and result in a total investment of about $5 billion.
SK received one of the largest tax-incentive packages in state history, totaling $300 million in grants, tax credits and free land.
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