SK Innovation, Continental to develop Li-Ion automotive batteries for EV's

SK Innovation and German autoparts maker Continental have signed an agreement to form a joint venture (JV) to develop and produce lithium Ion battery systems for automotive applications.

The new JV will be established by the second quarter of 2012 after the two companies finalized the details, in which SK Innovation will hold a 51% stake, while Continental holds 49%.

The initial JV operations which will be based in Germany and Korea will serve automotive OEMs globally; and the management team will be comprised of executives from both companies.

SK Innovation will supply battery cells to the venture and Continental will contribute its battery management system expertise.

The joint venture will develop battery systems for hybrid electric vehicles (HEV) and plug-in hybrids (PHEV), in anticipation of growth in the demand for them from automobile manufacturers worldwide.

SK Innovation CEO Jay Koo said the company is pleased to work together in such a key technology for future mobility.

"With Continental's automotive expertise and SK's battery leadership, we have confidence that the JV will become the market leader in battery systems," Koo said.

Continental CEO Elmar Degenhart said the JV is ideally positioned to become a technology leader in providing battery solutions to the automotive industry worldwide because both companies are technology leaders in their areas of expertise, and both share a common strategic perspective for future mobility.

"Together we will be a powerful team that will work together very effectively in a promising partnership," Degenhart said.