(BRUSSELS) - EU regulators on Monday approved a joint venture between South Korea's Samsung SDI and Germany's Bosch Corp to produce batteries for hybrid vehicles.

The deal, signed in June, calls for the 50-50 joint venture known as SB LiMotive to start production in 2010.

The European Commission "concluded that the transaction would not significantly impede effective competition in the European Economic Area or any substantial part of it, the commission said in a statement.

The South Korean firm has said the hybrid vehicle market will grow rapidly amid soaring oil prices and tougher environmental rules on emissions.

Samsung SDI, part of the giant Samsung Group, has been producing batteries largely for computers, mobile handsets and other electronic goods as well as flat display screens.

Bosch is a global leader in automobile components.

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