SEOUL, Aug 23 Reuters China39;s BYD Co Ltd and South Korea39;s KG Mobility Co Ltd are in talks to jointly build an electric vehicle EV battery plant in South Korea, a source told Reuters on Wednesday.

The Chinese battery and EV maker and the South Korean automaker hope to secure stable battery supplies through the venture, said the source with direct knowledge of the matter, declining to be identified due to the sensitivity of the matter.

Bloomberg said the factory aims to start mass production in January 2025, citing unnamed industry sources.

BYD the world39;s No.2 EV battery maker and KG Mobility formerly known as SsangYong Motor Co did not immediately respond to Reuters requests for comment.

Their venture would be the first joint factory between a Chinese battery cell maker and South Korean carmaker in South Korea.

Analysts said BYD39;s entrance to South Korea, home to the world39;s three big battery producers LG Energy Solution, Samsung SDI and SK On could help expand its customer base.

It is indeed a significant event, a major cell maker like BYD having production capacity in South Korea, where local cell makers have not yet mastered technology to offer lowcost batteries BYD could offer to automakers, said Kang Dongjin, an analyst at Hyundai Motor Securities.

BYD specializes in lithiumironphosphate LFP batteries, something the South Korean battery trio do not yet mass produce. Their focus is on nickel cobalt batteries.

Chinese battery materials firms…