Partnership will develop battery packs for electric and hybrid cars.
April 5, 2012
by The Canadian Press
AURORA, Ont.: Magna E-Car Systems is forming a joint venture with Hyundai Heavy Industries called Mahy E-Cell to develop battery cells and battery packs for electric and hybrid cars.
The new company will be 60% owned by Magna E-Car, a subsidiary of Aurora, Ont.’s Magna International Inc. and 40% owned by the South Korean green energy and shipbuilding company.
The two companies will jointly conduct engineering, design, development and testing activities on battery cells and packs for use in electric and hybrid vehicles.
Hyundai Heavy Industries said it expects Mahy E-Cell to be a “stepping stone” into the energy storage system business and plans to link it with its solar and wind power businesses.
Frank Stronach, founder and chairman of Magna E-Car said the venture’s developments will help grow the emerging electric and hybrid vehicle markets.
Hyundai Heavy Industries is a green energy and integrated heavy industries company with divisions specializing in shipbuilding, marine engines and machinery, offshore and engineering, industrial plant and engineering, electric systems, green energy, and construction equipment.
Magna E-Car is a partnership between Magna International Inc. and The Stronach Group, owned by Magna founder and former CEO Frank Stronach, that designs, engineers, manufactures and tests batteries for electric and hybrid vehicles.
Stronach, whose family long controlled the company, gave up that control in 2010 in exchange for about $1 billion in cash and shares, as well as control over joint venture Magna E-Car Systems.