Plug Power to invest $365m in Korean gigafactory as part of previously announced joint venture
Electrolysers and fuel cells will be mass-produced at an undisclosed location as part of the $745m venture, SK Plug Hyverse
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SK E&S, the conglomerate’s natural-gas-power unit, will contribute 510bn won towards the 1trn-won ($745m) JV, which will be known as SK Plug Hyverse.
According to an SK press release, the JV will create a hydrogen technology research & development centre, and a “gigafactory” that would mass-produce electrolysers and fuel cells for vehicles, while it will also build and operate liquid-hydrogen filling stations in South Korea. Exact production capacities of Plug's PEM electrolysers and fuel cells, and the location of the plant, have not been revealed.
SK invested $1.6bn in Plug Power in 2021 to become its largest shareholder.
In recent years, the US company has developed a policy of using joint ventures, such as its Hyvia business with car maker Renault, to expand its business opportunities around the world.
“I don’t think Plug can easily go into a place like South Korea or Australia and have that brand recognition and that reputation. So I think it spreads risk, spreads reward, but it also opens up opportunities that I don’t think Plug would be able to capture on its own.”