South Korea’s second-largest battery maker Samsung SDI said Tuesday it will launch a joint venture with local battery material maker EcoPro BM, as part of its efforts to develop next-generation batteries and better respond to the growing demand from global electric vehicle makers.
EcoPro BM will invest 72 billion won ($60.8 million) for a 60 percent share in the joint venture, while Samsung SDI will invest 48 billion won for a 40 percent share in the new company.
They plan to complete building a production line in Pohang, North Gyeongsang Province, by the end of this year, to produce cathode materials starting in 2022.
The partnership between the two Korean companies is expected to help the battery maker secure materials required to cover new demand in the EV market.
Last year, Samsung SDI signed a $3.2 billion deal with BMW to supply EV battery cells, starting in 2021. It also previously announced a partnership with Volvo, through which it will supply battery cells and modules for the carmaker’s electric truck models.
By Shim Woo-hyun (email@example.com)