SK innovation has liquidated its Chinese battery subsidiary.
According to the Financial Supervisory Service’s electronic disclosure system on March 12, SK innovation has liquidated its China-based subsidiary Blue Dragon Energy. It has been six years since the company invested 580 million yuan in Blue Dragon Energy in 2018 to conduct overseas business.
Market experts say that SK Group’s choice and focus on its battery business led to Blue Dragon Energy’s liquidation. This is because SK Group does not need to keep Blue Dragon Energy, which has business goals overlapping with those of SK on, as SK Group continues to invest in SK on, which was split off in 2021.
Initially, SK innovation planned to explore various investment opportunities through Blue Dragon Energy, including establishing a battery cell factory, promoting partnerships to secure raw materials, equity investments, mergers and acquisitions, and establishing joint ventures. In 2018, the year the company changed its name to Blue Dragon Energy, it partnered with Chinese lithium-ion battery maker EVE Energy to secure orders from Chinese corporate customers.
SK innovation also cited business streamlining as the main reason for the liquidation of Blue Dragon Energy. “Blue Dragon Energy was an investment entity for the battery business in Greater China. After the split-off of SK on from SK innovation in 2021, Blue Dragon Energy no longer has a reason to run under SK innovation, as SK on is active in China,” said an SK innovation official.