SK Energy to supply car batteries for Daimler unit

South Korea's SK Energy said on Sunday it has been chosen as a supplier of lithium-ion batteries for a hybrid electric vehicle project for Daimler unit Mitsubishi Fuso.

The project would go through two years of development, SK said in a statement, without disclosing other details including the value of future supplies.

Mitsubishi Fuso is the world's largest commercial vehicle maker, in which Daimler holds an 85 percent stake. The remainder is held by the Mitsubishi group companies, according to its website (www.mitsubishi-fuso.com).

Earlier this month, a source at SK Energy said the South Korean oil refiner was close to a battery deal with Mitsubishi Fuso. SK Energy is also in talks with a domestic elective vehicle maker, CT&T, to sell rechargeable batteries.

SK Energy said the deal with Mitsubishi Fuso would enable it to participate as a preferred supplier in a variety of hybrid and electric vehicle projects by Daimler.

Amid the global push for green energy and strong prospects for electric vehicles, SK is pinning hopes on auto batteries and other clean energy for its future growth.

But it faces competition with early movers in the sector at home and abroad, including South Korea's LG Chem, a battery venture of Samsung SDI and Robert Bosch, and Japan's Sanyo Electric and GS Yuasa.