SK Innovation will form a joint venture with EVE Energy and BTR in China.
The newly formed company will work on electric car batter materials such as cathode.
SK Innovation, EVE Energy and BTR will each put in 489 million yuan, 469 million yuan and 997 million yuan, respectively, for a 25%, 24% and 51% stake each.
The venture will manufacture cathode with a capacity of 50,000 metric tonnes a year for NCM batteries. It will be based in Changzhou.
SK Innovation already has a battery factory at the Chinese city.
The South Korean battery maker is planning to procure 20% of the cathode it sues on its own in the mid- to long-term.