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SK Innovation Co has agreed to form a joint venture with Chinese firms EVE Energy, a battery maker, and BTR, a battery material producer, to build a cathode manufacturing factory in China.
The cathode is a key material in manufacturing lithium-ion batteries used in electric vehicles, accounting for 40 percent of the cost.
The South Korean refinery-to-battery maker will invest 25 percent in the joint venture, the amount of which was not disclosed, with BRT and EVE Energy holding 51 percent and 24 percent stakes, respectively.
The company will disclose the terms once its board of directors approves the investment.
SK Innovation has intensified its EV battery production capacity in China via joint ventures. The new deal will enhance its electric vehicle battery manufacturing capacity in China and help meet growing demand in the world's largest auto market.
SK Innovation currently operates a joint battery factory with EVE in the city of Yancheng.
