South Korean unit of Indian carmaker Mahindra and Mahindra Ltd, SsangYong Motor Co, said on Wednesday it has sealed an initial pact with Chinese electric vehicle maker BYD Auto Co for EV battery development.
SsangYong Motor has signed a memorandum of understanding (MoU) with BYD Auto to develop car batteries and produce battery packs for its models, the company said in a statement.
"The partnership with BYD will pave the way for the company's plan to transform itself into an EV maker in the era of electrification," said court-appointed administrator Chung Yong-won.
BYD's wholly owned battery manufacturer FinDreams Industry Co. will participate in the battery development project, SsangYong said.
SsangYong plans to install the car battery developed under the partnership on the U100 EV, which is under development for its mass production in 2023, reports Yonhap news agency.
The two companies plan to expand the partnership to jointly develop an EV-only platform in the long term.
In April, SsangYong was placed under court receivership for the second time after undergoing the same process a decade earlier.
Its Indian parent Mahindra failed to attract an investor due to the prolonged COVID-19 pandemic and its worsening financial status.
Court receivership is one step short of bankruptcy in South Korea's legal system. In receivership, the court will decide whether and how to revive the company.
A local consortium led by Edison Motors Co, a South Korean electric bus and truck maker, was selected as the preferred bidder in October and is now in the process of acquiring the debt-laden carmaker.
(With inputs from IANS)
