SK Innovation and Continental Corp. announcef their intention to team up for powering electric vehicles worldwide: Both corporations sign a Heads of Agreement that describes the formation of a joint venture with which both companies want to develop, manufacture and market Lithium Ion battery systems for automotive applications. Due to the worldwide regulatory efforts in reducing carbon emissions and changing consumer needs, automobiles will become increasingly dependent on battery systems over the next 10 years.
SK Innovation and Continental will have 51% and 49% of ownership respectively. The initial JV operations will be based in Germany and Korea; and the management team will be comprised of executives from both companies. The business will serve automotive OEMs globally. The new joint venture is subject to the completion of JV agreements, which are expected to be achieved by midyear 2012.