UPDATE 1-SK Energy shares jump on battery supply deal

Thu Jul 22, 2010 3:17am GMT
 

* SK Energy to supply rechargeable battery for Hyundai-Kia

* Hyundai-Kia to launch new electric vehicles later this year

* SK Energy shares jump more than 6 pct as of 0236 GMT (Adds more details and updates shares)

SEOUL, July 22 (Reuters) - Shares of SK Energy (096770.KS: Quote) jumped more than 6 percent on Thursday after the firm said it would supply rechargeable batteries to Hyundai Motor (005380.KS: Quote) and Kia Motors (000270.KS: Quote).

South Korea's top crude oil refiner has been pinning hopes on rechargeable batteries for electric vehicles to capitalise on the global push for green energy, after being chosen as a supplier of lithium-ion batteries for a hybrid electric vehicle project for Daimler (DAIGn.DE: Quote) unit Mitsubishi Fuso last year. [ID:nSEO13078]

"This deal will globally prove SK Energy's battery technologies for electric vehicles with high performance and capacity," a statement from SK Energy said.

Via charging the battery once, electric vehicles can run up to 160 kilometres, while the vehicle can run as fast as 130 kilometres per hour, the statement said.

The statement quoted Hyundai Motor and Kia Motors as saying they would soon test 30 units of electric vehicles for mass production later this year, while also launching a new electric vehicle based upon Kia Motors' automobiles from late 2011.

Last month, SK Energy said that it would focus on exploration and production of oil, and research and development of energy led by rechargeable batteries for electric vehicles, spinning off its refining and petrochemical sectors. [ID:nSGE65K026]

Shares in SK Energy gained 6.36 percent versus the broader market's .KS11 0.33 percent fall as of 0236 GMT. (Reporting by Jungyoun Park and Cho Meeyoung; Editing by Jacqueline Wong)

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