Hyundai Mobis and LG Chem tie up to make lithium-ion electric vehicles batteries

HYUNDAI MOBIS CO., a South Korean auto-parts maker, said Wednesday it has launched a joint venture with LG CHEM LTD.  to produce lithium-ion car batteries. The venture, named HL GREEN POWER CO., is expected to start production in the second half of this year, Hyundai Mobis said in a statement.

The 29 billion won (US$25.1 million) venture is 51 per cent owned by Hyundai Mobis, with LG Chem, the nation’s biggest chemicals maker, holding the remaining stake.

Hyundai Mobis and LG Chem will build a factory in the city of Uiwang, near Seoul, where the auto-parts maker has a plant for hybrid and electric cars. 

The factory plans to produce battery packs for 200,000 electric vehicles a year. By 2014, Hyundai Mobis and LG Chem plan to spend a total of 46 billion won (US$39.6 million) to increase the factory’s annual capacity to 400,000 battery packs.