Under the agreement, HHI and Magna E-Car will jointly conduct engineering, design, development and testing activities with the goal of preliminary validation of battery cell and battery pack technologies for electric and hybrid electric vehicle applications.

Magna E-Car will hold 60% stake in the joint venture and remaining will be owned by HHI.

South Korea-based HHI expects the establishment of MAHY E-CELL to serve as a stepping stone to enter the Energy Storage System business and plans to link its solar and wind power business with ESS as a new growth engine.

Magna E-Car founder and chairman Frank Stronach said the partnership will advance next generation cell and battery pack technology to support the growth of the electric and hybrid electric vehicle markets.