SEOUL — Vital automotive battery provider SK Innovation Co. reported on Thursday its shareholders permitted the company’s proposal to independent its battery small business into a new firm.

The decision paves the way for the battery unit — a important provider for Ford Motor Co., Hyundai Motor Co. and other automakers — to potentially increase resources and go general public to finance its large-charge production ability expansion.

The unit, to be introduced on Oct. 1, will to begin with be a wholly-owned subsidiary of SK Innovation, tentatively named “SK Battery Co. Ltd.”

Additional than eighty percentr of SK Innovation shareholders voted in favor of the prepare, SK Innovation reported in a assertion.

“It is really vital to protected timely financial means for further quantitative and qualitative expansions in the upcoming,” SK Innovation CEO Kim Jun informed shareholders.

“With the break up-off of the battery small business, we prepare to evaluate many strategies to protected means, this sort of as developing joint ventures, partnerships and attracting strategic and financial traders.”

Kim performed down speculation the battery unit could go general public as early as next yr. He reported the small business, which is aiming to turn financially rewarding in 2022, expects its financial performance to increase as its U.S. factories start off functions.