SK in cahoots with German firm on electric batteries

SK, Korea’s No. 3 conglomerate, said yesterday it has agreed with Germany-based auto parts maker Continental AG to team up for an electric car battery joint venture.

Under the agreement, SK Innovation and Continental will set up a Berlin-based joint venture by the end of the year, with the Korean company holding a 51 percent majority stake, according to SK.

The two companies plan to invest around 400 billion won ($348 million) over the next five years and run research centers in Berlin and Daejeon.

“SK’s battery cell and Continental’s system will enable the best solution for electric car batteries and provide a new model for the global car market,” said an SK executive.

The deal is the latest in Korean firms’ efforts to tap the growing electric vehicle market.

Earlier this year, top shipbuilder Hyundai Heavy Industries agreed to set up an electric car battery joint venture with Canadian auto-parts maker Magna E-Car.