SK Group said Wednesday that it sold its subsidiary SK (Chongqing) Lithium Ion Battery Material Co. to CIAM Group, China’s battery production company, for 100 billion won.

SK established a memorandum of understanding with CIAM Group on the deal on July 7, and plans to sign a formal contract in the beginning of September.

SK (Chongqing) Lithium Ion Battery Material Co. has dealt with producing cathode materials for electric car batteries. SK China and SKC had 90.91 percent and 9.09 percent of its shares, respectively.

According to SK Group, it plans to receive half of the 100 billion won in cash and the remaining half in the form of CIAM Group’s stocks.

CIAM Group has FDG Electric Vehicles Limited as a subsidiary, and SK said it expects synergy between the two companies.

An SK Group spokesperson said the MOU did not signify the group expanding its electric vehicle business, but rather looking into new opportunities as a company.

(sangyj@heraldcorp.com)