South Korea-based SK Innovation and international automotive supplier, Continental have agreed to develop and supply battery technologies for the automotive industry.

The partners will form a jointly managed company with a shareholding pattern of 51:49 in favor of SK Innovation, which will conduct its operations from Berlin, Germany while development works will take place in both Berlin and Daejon, South Korea.

SK Innovation and Continental will contribute their respective know-how to the newly-formed company to develop, produce and market lithium-ion battery systems for cars.

Commenting on the developments SK Group executive vice chairman Chey Jae-won said,"The combination of SK’s battery cell know how and Continental´s battery system know how will yield the best solution for the operation of electric car batteries and therefore suggests the most evolved model to the global automobile market."

"We will make up a strong team that will work together highly effectively in developing and manufacturing one of the technologies that is key for future mobility," added Continental executive board chairman Dr. Elmar Degenhart.

Business operations of the new company are expected to commence in the fourth quarter of 2012.