UPDATE 1-SK Energy in talks to sell car batteries to local firm

(Updates with company comments)

SEOUL Oct 13 (Reuters) - South Korea's SK Energy (096770.KS) said on Tuesday it had been in talks to supply rechargeable auto batteries to CT&T, a local maker of small electric vehicles.

It would mark the first car battery deal for SK Energy, the country's top oil refiner that is betting on lithium-ion batteries to boost growth.

Last week, a source told Reuters that SK Energy was also close to supplying batteries to Daimler's (DAIGn.DE) Japanese truck unit Mitsubishi Fuso. [ID:nSEO27479]

On Tuesday, a spokesman from SK Energy said the company has been in talks with CT&T over customising batteries but said no decision has been made.

Earlier, the Korea Economic Daily newspaper reported SK was expected to supply up to 50,000 units annually to CT&T, which produces 60,000 electric vehicles per year in South Korea and China.

SK Energy will compete with home rival LG Chem (051910.KS) and a battery venture between Samsung SDI (006400.KS) and Robert Bosch, as well as with Japanese makers. (Reporting by Cho Meeyoung and Rhee So-eui)