Solus Advanced Materials will form a join venture with Toyota Tsusho in the US that will manufacture and sell elecfoils used in lithium-ion batteries.
The pair will aim to secure a production capacity of 30,000 metric tonnes per year by 2024, Solus said.
The South Korean firm said it will collaborate with its Japanese counterpart to optimize production process, develop next-generation technologies and share networks to procure raw materials and sell the foils.
Due to the US-Mexico-Canada Agreement that went into affect in July, automobile companies must procure over 75% of their materials and components locally for tax benefits.
More North American customers will prefer to procure elecfoils locally due to the law, Solus said.
The South Korean firm has an elecfoil factory at Hungary that services European customers.