LG Chem Limited said Thursday that it has decided to spin off its battery business into a company tentatively called LG Energy Solution.

The move comes in a bid to further boost its leading position in the sector amid growing demand for electric vehicle(EV) batteries. According to the company in a regulatory filing, the new entity is scheduled to launch December 1.

The decision came after LG Chemical's battery business unit logged an operating income of 155-point-five billion won, or 132 million U.S. dollars, in the second quarter on record quarterly sales of more than two-point-eight trillion won. 

LG Chemical is a key supplier of batteries for EVs for various brands, including GM, Ford, Renault, Volkswagen and Hyundai Motor among others.