LG Chem to build EV battery plant in China
South Korea's LG Chem signed a memorandum of understanding to build a factory to produce electric-vehicle batteries in China by 2015, betting on growing demand.
Two state-owned companies -- Nanjing Zijin Technology Incubation Special Park Construction Development Co. and Nanjing New Industrial Investment Group Ltd. -- will partner with LG Chem to build the facility.
The South Korean firm is hoping China will reinvigorate sales of EVs, which so far have failed to live up to their initial hype.
Automakers are rushing to introduce new EVs in China, encouraged by government plans to put 500,000 EVs on the road by 2015 and 5 million units by 2020.
LG Chem currently has a factory in Nanjing that produces small batteries and displays for smartphones and other mobile devices.
It also operates EV battery factories in Korea and the United States.