SK Materials Co., a semiconductor and display material subsidiary under SK Group, said Tuesday it will form a joint venture with Group 14 Technologies to tap into the lithium-ion battery material business.

SK Materials said it plans to invest 60 billion won ($52 million) to hold a 75 percent stake in the joint venture with Group 14 Technologies, a US-based provider of lithium-silicon battery material designed to enhance the energy density of batteries.

The joint venture will build a lithium-silicon battery material factory in South Korea in 2022 to meet growing demand for high-performing battery materials, SK Materials said.

In December, SK Materials invested $13 million to acquire 10.3 percent of shares in Group 14 to become its third-largest shareholder.

SK Group, South Korea's third-biggest conglomerate, has been ramping up investment in the battery business to target the growing electric vehicle market, with its battery-making subsidiary SK Innovation Co. pledging 30 trillion won of investment by 2025 to go green. (Yonhap)