Plug Power Inc (NASDAQ:PLUG) and South Korea’s SK E&S have pledged to spend KRW 1 trillion (USD 746m/EUR 678.3m) to build a gigafactory for hydrogen facilities and a research facility in South Korea.
The member of South Korean industrial conglomerate SK Group said on Tuesday it will inject KRW 510 billion into the project, while US-based turnkey hydrogen solutions provider Plug Power will cover the remaining KRW 490 billion. The investment will be made by the duo’s SK Plug Hyverse joint venture (JV).
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The duo’s plan is to produce hydrogen fuel cell systems, hydrogen fueling stations and electrolysers and supply certain markets in Asia. The factory will be installed in a major metropolitan area in South Korea, with commercial operations planned to start in 2025.
SK Plug Hyverse JV is 51%-controlled by SK E&S, with Plug Power holding the remaining shares. The two companies have been working together since early 2021 when SK Group made a USD-1.6-billion (EUR 1.4bn) capital investment in Plug Power and became its largest shareholder.
