Paul Lienert

(Reuters) – Soelect, a battery startup and Lotte Chemical, a Korean supplier of chemicals said Tuesday that they plan to invest over $200 million into a joint venture in order to produce advanced batteries for electric cars in the United States.

The companies signed a memorandum of understanding to scale up production of Soelect’s LiX lithium metal anodes for next-generation batteries with higher energy density and fast-charging capability.

The proposed venture aims to boost Soelect’s current pilot production to high volume by 2025.

Lithium metal anodes in EV batteries have the potential of storing more energy. They can also provide a longer range for vehicles than those with existing lithium-ion lithium-ion cells that contain graphite, silicon-rich and other anodes.

Soelect is a North Carolina company that was founded in Greensboro. It raised $13M in funding. Investors include General Motors Ventures, KTB Network and Lotte Ventures, a member of Korea’s Lotte Group and an affiliate of Lotte Chemical Corp.

Jin Cho (founder and Chief Executive of Soelect) stated that the company currently has over 20 clients, mainly in the auto industry.

Lotte Group, based in Seoul, is expanding its business in battery materials. It focuses on key components such as separators, electrode foils, and organic solvents.

General Motors Co. (NYSE) has indicated that it will be looking into the possibility of using lithium metal anodes to power its next-generation Ultium cells.

The automaker has said the investment in Soelect “further expands our efforts to accelerate the advancement of battery chemistries” and that Soelect’s lithium metal technology “could serve as an enabler for both future lithium-metal and solid-state EV battery anode designs.”

Other North American companies have also been working with lithium metal anodes. These include Li-Metal Corp, which is based out of Toronto, and SES, located in Woburn (Massachusetts).