SK On raises $1.51 billion from private equity firms

SEOUL South Korea's SK On raised about 2 trillion won $1.51 billion from private equity firms, pushing the electric vehicle EV battery maker's valuation to around 20 trillion won as it works to expand production abroad, local media reported on Thursday.

The battery unit of energy company SK Innovation Co Ltd has been in talks with a local private equity consortium that includes EastBridge Partners, Korea Investment Partners and Stella Investment, according to the Korea Economic Daily Newspaper.

SK On has been talking to global private equity firms, including Carlyle Group Inc and BlackRock Inc, but talks have stalled due to the market impact of war in Ukraine and interest rate hikes, the newspaper said.

SK On did not make a statement when contacted by Reuters. A $2 billion loan from three export credit agencies was secured by SK On last month to finance its factory in Hungary.

SK On was spun out of SK Innovation last year. Its clients include Ford Motor Co, Hyundai Motor Co and Volkswagen AG, and it has production facilities in the United States, South Korea, China, Hungary and Turkey.