On Friday, a source familiar with the matter at hand said, shareholders of LG Chem have approved a proposal by company to separate its battery business into a new company.

The development paves the way for its battery business, to potentially raise funds and go public to fund its costly capacity expansion. LG Chem supplies batteries to Tesla Inc and General Motors Co.

During the shareholder’s meeting, more than 82% voted in favor of the plan, said the source.

LG Chem declined comment.

LG Chem is said is launch its new unit on December 1. It will be its first wholly-owned subsidiary.

It has been tentatively named LG Energy Solutions.

Around 30% of the company’s shares is likely to be listed through an IPO in about a year.

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Tags: batteries, battery business, capacity expansion, divest, divestiture, General Motors Co, go public, initil public offering, IPO, LG Chem, LG Energy Solutions, raise funds, separate, shareholders, supplier, supplies, Tesla Inc, wholly owned subsidiary