Conti targets EV market with battery JV
Continental Corporation and Korean company SK Innovation have announced they will jointly develop, manufacture and market lithium ion batteries systems for electric vehicles. The two companies have signed an agreement to set up a joint venture for this purpose, with SK Innovation and Continental holding 51 and 49 per cent ownership respectively.
According to Continental, the initial joint venture operations will be based in Germany and Korea and the management team will be comprised of executives from both companies. The new operation is subject to the completion of joint venture agreements, which are expected to be achieved by mid-2012.
“We are pleased to work together in such a key technology for future mobility. With Continental’s automotive expertise and SK’s battery leadership, we have confidence that the JV will become the market leader in battery systems,” stated Dr. Jay Koo, CEO of SK Innovation.
“The JV is ideally positioned to become a technology leader in providing battery solutions to the automotive industry worldwide because both companies are technology leaders in their areas of expertise, and both share a common strategic perspective for future mobility. Together we will be a powerful team that will work together very effectively in a promising partnership,” added Continental CEO Dr. Elmar Degenhart.
The joint venture will focus on developing Li-Ion battery systems for automotive customers. SK Innovation will supply lithium ion battery cells to the operation while Continental will supply Battery Management Electronics and its overall automotive systems competence. The newly formed entity will bring together experience in developing battery systems for vehicle manufacturers’ Hybrid Electric Vehicle (HEV), Plug-in Hybrid (PHEV) and Electric Vehicle (EV) programmes.