South Korean companies have agreed to form an alliance in an effort to develop a battery pack that can be mounted on future plug-in hybrid electric vehicles (PHEV), government and industry sources said Monday.

Sources said Hyundai Motor, the country’s No. 1 carmaker, had teamed up with LG Chem, SK Energy and SB LiMotive to develop batteries in the next 5-6 years that will be a critical part of these eco-friendly vehicles. The development is designed to cut back on the use of fossil fuels, and help reduce greenhouse gases.

The pact outlines the competitive development of a new battery pack by the three companies, with Hyundai Motor pledging to buy as many as possible for use in their future PHEV cars. The company said it wants to roll these cars off its assembly line around 2013.

The Ministry of Knowledge Economy and Korea Automotive Technology Institute will support and guarantee the agreement by the four companies.
– (koreatimes.co.kr)