The Ministry of Knowledge Economy says the U.S.-based energy giant's Japanese subsidiary Tonen is constructing the factory in Gumi, North Gyeongsang Province to produce "separator" films -- a component of lithium-ion batteries used in hybrid electric cars.

Tonen, which produces 35 percent of all lithium-ion battery separators worldwide, says it decided to build the plant to meet the demand in the fast-growing market.

The Korean government says the company's investment in Korea is welcome news amid high oil prices and efforts to cut greenhouse-gas emissions.

Arirang News