South Korea’s SK Innovation Company, China’s state-owned Beijing Automotive Industries Holding Co. and LCD maker Beijing Electronics Holding Co. have agreed to form a joint venture to produce battery packs for EVs, Asian Power reports.

The new JV will invest $166.4 million to build a battery plant that will have an annual production capacity of 200 MWh (enough to power about 10,000 EVs) by the second half of 2014. The plant’s capacity will increase to around 30,000 EVs’ worth of batteries by 2017. SK Innovation said the joint venture will grow into the biggest EV battery manufacturer in China, and will generate annual sales of over $175 million.

SK Innovation will provide battery cells manufactured in its Seosan factory until the joint venture develops its own manufacturing capability.

Sources: Asian Power, Green Car Congress