Asian Tech Press (Nov 5) -- SK On, a battery-producing spinoff of South Korean battery maker SK Innovation Co., has reportedly decided to invest $2.53 billion to build its fourth plant, also the first wholly-owned battery factory in China.

The battery unit recently signed an agreement with Yancheng city in China's northeastern Jiangsu Province to build a fourth battery plant with a total investment of 3 trillion won ($2.53 billion), Yonhap News Agency reported Thursday, citing industry sources.

SK On announced in September that it would make an initial payment of $1.06 billion in registered capital required to set up the plant.

And the company has started production at its battery plants with annual capacities of 7GWh, 10GWh and 10GWh in Changzhou, Yancheng and Huizhou.

The Changzhou plant is a joint venture with state-owned Beijing Automotive Group Co., Ltd. (BAIC), and the Yancheng and Huizhou plants are joint ventures with Chinese battery maker EVE Energy Co.

The new plant in Yancheng, which is wholly owned by the Korean company, will have an annual capacity of over 10 GWh and will be SK On's largest battery plant in China, with construction scheduled to begin next year.