<article><p class="lead">A group led by South Korean auto parts producer MS Autotech is to produce electric vehicles (EVs) for Chinese automaker Future Mobility (FMC) after taking over a shut plant formerly operated by a unit of US firm General Motors.</p><p>The GM Gunsan plant, in southwest South Korea's Jeonbuk province, is targeted to start production with 50,000 EVs in 2021 and grow to 150,000 units by 2025. MS has finalised its 113bn won ($99.2mn) purchase agreement with GM Korea, according to a statement by the provincial government. Joint-venture partners will cover their share of costs for the plant purchase and an estimated W300bn in modifications to convert it for producing EVs.</p><p>FMC, whose Byton unit is scheduled to start producing EVs later this year, will be among the partners in the venture, as will other South Korean auto parts producer. MS is a supplier for US EV producer Tesla and South Korean automaker Hyundai Motor. FMC was founded in 2015 by Chinese conglomerate Tencent, electronics firm Foxconn and car retailer China Harmony New Energy Auto. </p><p>GM's loss-making South Korean unit closed its Gunsan plant last May, which was operating at only about 20pc of its 260,000 unit/yr capacity. </p><p>The MS-led venture may seek contracts with other automakers, with the Gunsan area becoming a hub for EV manufacturing. Chinese automakers Chery Automotive and Songuo Motors are considering EV plants in the area through joint ventures with South Korean partners.</p><p>South Korea is already home to three of the world's largest EV battery producers, with companies looking to capitalise on growing demand growth in China. The Chinese market, which surpassed 1mn EV sales for the first time last year, accounts for more than half of global sales.</p></article>
