SKC, a flagship company of SK Group, the nation's third-largest conglomerate, said Monday it has recently concluded a contract with the U.S. Department of Defense to jointly develop a next-generation lithium-ion polymer (LIP) battery.

An SK official said the joint project aims to develop a new LIP battery which minimizes the use of organic solvents that pollute the environment and simplifies the manufacturing process.

The official added the U.S. Department has already provided SKC with US$300,000 for research activities, and is seeking an additional $4.7 million to be given to the Korean company next year for the same purpose.

According to the official, such U.S. agencies as the Army, Navy and NASA have recently become greatly interested in the new LIP batteries, which are lighter, longer in life span and more secure than existing LIP batteries.