SEOUL, July 2 South Korea's LG Chem Ltd
on Wednesday said it had signed a memorandum of
understanding to build a factory for electric vehicle batteries
in China by 2015, betting on growing demand in the world's top
The factory in Nanjing will break ground in September and
will cater to Chinese automakers like SAIC Motor Corp
and global firms such as General Motors, LG
Chinese state-owned corporations - Nanjing Zijin Technology
Incubation Special Park Construction Development Co Ltd and
Nanjing New Industrial Investment Group Ltd - would partner with
LG Chem to build the facility.
The factory would cost hundreds of millions of dollars and
would generate combined sales of 1 trillion won ($989.90
million) by 2020.
The South Korean firm is hoping China will reinvigorate
sales of electric vehicles, which so far have failed to live up
to their initial hype.
Automakers are rushing to introduce new electric vehicles in
China, encouraged by government plans to put 500,000 EVs on the
road by 2015 and 5 million by 2020.
LG Chem currently has a factory in Nanjing producing small
batteries and displays for smartphones and other mobile devices.
It also operates EV battery factories in Korea and the
($1 = 1010.2000 South Korean Won)
(Reporting by Hyunjoo Jin; Editing by Stephen Coates)