Asian Tech Press (Sep 17) -- South Korean battery maker LG Energy Solution bought a 4.8% stake in a Chinese battery material supplier for $297.5 million, Yonhap News Agency reported Friday.

LG Energy said Friday that it spent 350 billion won ($297.5 million) to acquire a 4.8% stake in Shanghai Greatpower Technology Co., Ltd (Greatpower), a Chinese nickel and cobalt material supplier, to ensure a stable supply of core battery materials.

Greatpower is building a nickel sulfate refinery in China, enabling the South Korean battery maker to achieve mass production of batteries for electric vehicles by 2023.

The two companies have also signed a six-year agreement, under which Greatpower will supply 20,000 tons of nickel to LG Energy Solutions for six years starting from 2023.

The report also said that the nickel sold by Greetpower is enough to supply approximately 370,000 units of electric vehicles.