China-based electric vehicle (EV) manufacturer BYD and South Korean car manufacturer KG Mobility are reportedly in discussions to construct a joint cell manufacturing facility in South Korea.
The two parties hope to begin large-scale commercial production of the battery pack factory in January 2025, reported the Korea Economic Daily Global Edition.
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This facility will be the country’s first combined plant between an overseas cell manufacturer and a domestic car manufacturer.
According to a KG official, the two companies have still not decided on the facility’s location and capacity.
However, the production facility is likely to be located near KG’s plant in Pyeongtaek, approximately 80km south-west of Seoul.
A source was quoted by the publication as saying: “To expand EV lineups, they need to increase production efficiency by securing battery packs from nearby facilities of the car plant.
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By GlobalData“The automaker may have partnered with BYD to procure battery packs at home.”
Since 2021, KG has been partnering with BYD on the development.
According to a source in the battery sector in Seoul said: “Smaller automakers in South Korea will seek more cooperation with foreign battery makers.”
In June this year, French car manufacturer Renault was reportedly planning to construct a new facility to produce 200,000 EVs per year at its existing vehicle plant in Busan, South Korea.
