SK Materials said on Tuesday that it will build a new silicon anode factory at Sangju in South Korea.
It will spend 850 billion won to build a plant that manufactures silicon anode and raw materials needed for their production.
The factory will be built by its planned joint venture with US firm Group14.
SK Materials will own a 75% stake in the venture with the remaining shares owned by Group14.
The venture will have an initial capital 77.2 billion won. It will first spend 550 billion won to build the silicon anode factory, which will start operation in 2022.
SK Materials will spend another 300 billion won for a silane factory. Silane is used to manufacture silicon anodes.
Silicon anode is made by adding silicon into graphite. They are over three times more energy dense compared to anode made purely with graphite.
They are also light and take up less space so can be applied into batteries for mobile devices, tablets and drones.
However, silicon anodes are less durable and can expand, an obstacle companies are trying ti overcome.
SK Materials and Group14 plan to overcome this characteristic by attaching silicon to a carbon substrate.
SK Materials said it plans to expand its business to carbon nanotube conductive materials, binders and additives.