China’s leading electric vehicle (EV) maker BYD Auto is in talks with South Korean automaker KG Mobility Corporation to establish a battery cell manufacturing joint venture in South Korea, according to local reports.

BYD, which is also the world’s third-largest EV battery producer, is looking to enter the South Korean EV supply-chain with a partnership with KG Mobility, formerly known as Ssangyong Motor before it was acquired by local steel and chemicals company KG Group.

The two companies are planning to launch mass production of battery cells in 2025, according to industry sources. A decision on the location and annual production capacity has yet to be made, but is expected to be built in the vicinity of KG Mobility’s vehicle assembly plant in the city of Pyeongtaek - some 80 km south of Seoul.

KG Mobility is set to launch its first EV next month, the Torres EVX SUV, powered by a lithium iron phosphate battery pack, in September. This will be followed by purpose-built EV models from 2025, including the O100EV pickup truck and the SUV-F100EV SUV. The company is also currently in the process of buying local electric commercial vehicle manufacturer Edison Motors.