Hyundai Heavy Industries (HHI) and Magna E-Car Systems (Magna E-Car) have agreed to form a $200m joint venture (JV) to co-develop automotive Li-ion batteries.
The new JV called MAHY E-CELL will be 60% owned by Magna E-Car, while HHI will take the remaining 40% stake.
Under the deal, both the companies will jointly conduct engineering, design, development and testing activities for the preliminary validation of battery cell and battery pack technologies for electric and hybrid electric vehicle applications.
MAHY E-CELL will carry out joint research and establish a production line - with the aim to produce 1,000 battery packs per year from 2014.
HHI COO of green energy division Lee Choong-dong said the establishment of MAHY E-CELL is a reflection of the company's determination to become a leading eco-friendly integrated energy company by advancing into Europe and North America's electric car batteries market and ESS business.
Magna E-Car founder and chairman Frank Stronach said the company together with HHI will advance next generation cell and battery pack technology to support the growth of the electric and hybrid electric vehicle markets.
