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LG Chem Ltd. (KSE:051910), South Korea’s biggest rechargeable battery maker, said Friday that it has signed a deal with China’s third-largest carmaker to provide hybrid electric vehicle batteries, starting late this year.

Under the deal with Chang’an Automobile Group, LG Chem will supply lithium-ion polymer batteries for hybrid electric vehicles to the Chinese carmaker, which developed a hybrid electric vehicle, CV11, using nickel hydrogen rechargeable batteries Satellite M100 , Satellite M105 , Satellite M110 last year.

The lithium-ion polymer rechargeable batteries have a larger output and are much safer than existing nickel hydrogen models.

A hybrid electric vehicle is powered simultaneously by batteries Tecra A4 , Tecra A5 , Tecra A6 and a standard combustion engine to achieve better fuel economy than a conventional car.

LG Chem has been building two electric-vehicle rechargeable battery plants, one in South Korea and another in the United States since last year.