South Korean SK Innovation is partnering with Germany’s Continental for the development and supply of first class battery technology for the automotive industry.
On Monday the two companies signed an agreement in Frankfurt founding a jointly managed company. The know-how of the two firms will be concentrated in this new company with the goal of mutually developing, producing and globally marketing lithium-ion battery systems for cars.
Continental and SK Innovation anticipate that, as CO2 regulations become more stringent worldwide, electrically assisted drives and pure electric vehicles will become increasingly important in the market. And the battery is one of the key components of these technologies.
The new joint company will draw on the expertise of the two partners behind it. SK Innovation is providing its know-how in the development of battery cells and separators.
In turn, the international automotive supplier Continental has many years of experience in developing and producing battery electronics and entire battery systems as well as integrating them into the vehicle.
Continental supplied the first mass-produced lithium-ion batteries in 2007.
SK Innovation will hold a 51 percent stake in the new company, Continental 49 percent. The business strategies of SK Innovation and of Continental will remain unaffected by the joint management of this new company.
The venture, which will be managed operationally from Berlin, is slated to start business in the fourth quarter of this year. Its research and development activities will be carried out in Daejon, South Korea, in addition to Berlin.
Production, marketing and sales will be set up locally in the target markets worldwide. Initially, there will be about 200 employees worldwide, with both partner companies providing equal portions of the workforce.
Both of the founding companies will continue to pursue their own business strategy.