Hyundai Mobis, LG Chem in talks to form car-battery joint venture

Hyundai Mobis Co., South Korea's largest auto-parts maker, has been in talks with LG Chem Ltd., the nation's top chemicals maker, to set up a joint venture to produce car batteries for hybrid and electric vehicles, a source said Friday.

Hyundai Mobis, a unit of Hyundai Motor Co., and LG Chem have been looking to form the venture in South Korea and are likely to sign a preliminary agreement as early as next week, the source said on the condition of anonymity.

An official at Hyundai Mobis acknowledged the company was considering jointly producing car batteries with LG Chem, but no details have been set.

"We are pushing for a joint production of batteries with LG Chem, but nothing has been confirmed," the official said.

On the news, shares of both Hyundai Mobis and LG Chem rose.

Hyundai Mobis gained 4.43 percent to 141,500 won (US$113.5) and LG Chem climbed 2.51 percent 183,500 won at one point in early morning trading in Seoul.

Related terms: chemicals, joint venture, south korea