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.

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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“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.