Kia, SK Innovation to cooperate in electric car development

Korea's second-largest automaker Kia Motors Corp. said Wednesday that it has sealed an agreement with top oil refiner SK Innovation Co. to boost cooperation in the development of electric cars.

Under the memorandum of understanding (MOU), the two companies will work on batteries for future electric vehicles, and carry out joint marketing plans to promote green cars, according to Kia Motors.

SK Innovation will use an electric model of the Ray, Kia's box-type small car, for its business while Kia will offer the Ray for the rental car service run by SK Networks Co., the trading arm of SK Group.

Shared information about the electric cars and batteries learned from the bilateral business collaboration will be applied to a new electric vehicle expected to be developed by Kia in 2014, the carmaker said in a statement.

Kia Motors has been buying batteries for electric cars from SK Innovation since last year. (Yonhap)