* JV to produce lithium-ion battery packs for hybrid cars
* Hyundai Mobis shrs dive after Hyundai Motor shr deal (Adds details of deal, background, shares)
Hyundai Mobis has signed a memorandum of understanding with LG Chem, the country’s No.1 chemicals company, for a venture which would develop and produce lithium-ion battery packs for hybrid cars, South Korea’s top car-parts maker said in a filing with the Korea Exchange.
Financial details of the deal were not disclosed.
In June, LG Chem said it would invest 1 trillion won in an electric car battery plant over the next four years. It aims to derive total revenue of 2 trillion won from the battery business in 2015. [ID:nSEO150729]
Its U.S. unit is also in a deal to supply next-generation lithium-ion batteries for General Motors’ [GM.UL] Volt plug-in.
Hyundai Motor Co 005380.KS launched its first hybrid car in South Korea in July, starting sales of the Elantra LPI, a hybrid model of its popular compact sedan that uses liquefied petroleum gas (LPG) and lithium-ion polymer batteries. [ID:nSEO339458]
Hyundai is due to launch its first gasoline-electric hybrid, a version of the flagship Sonata in the latter half of 2010.
Another South Korean rechargeable battery maker, Samsung SDI Co 006400.KS, has teamed up with Germany's Robert Bosch and operates a car battery venture called SB LiMotive. SB LiMotive is set to build a plant in South Korea to start producing car batteries in 2011.
Shares in Hyundai Mobis ended down 9.86 percent at 132,500 won, far underperforming a 1.0 percent fall in the wider market .KS11, after it announced on Friday it had bought Hyundai Motor shares worth 1.34 trillion won ($1.08 billion) from Hyundai Steel 004020.KS. [ID:nSEO241765]
LG Chem fell 1.05 percent to 188,500 won. (Reporting by Cheon Jong-woo; Editing by Muralikumar Anantharaman)
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