South Korea's LG Chem Ltd will decide on expanding production capacity for electric vehicle batteries within the next three or four months.

"We are seriously considering investing in expanding (our EV battery production)," President Kwon Young-soo, who oversees LG Chem's battery division, said on May 29 at the Busan Motor Show, according to Reuters.

He failed to mention where it plans on expanding capacity, according to Reuters.

The company expects EV demand to take off in 2016.

LG Chem supplies batteries for companies like General Motors and Renault SA.

Currently, the EV battery maker has one battery plant in Korea and another one in the U.S.

Chief Executive Park Jin-soo said back in February that the company was considering building an EV battery plant in China.

As part of Beijing's effort to fight pollution and reduce reliance on oil imports, China has set a target of putting 5 million electric or plug-in hybrids on country roads by 2020.

The news comes the same week that BMW announced it would deliver imported electric vehicles in China sometime this September.

The German automaker said it will sell its all-electric powered BMW i3 sedan and plug-in hybrid i8 sports car in four cities in China at first, with a sales cap of 1,000 vehicles in 2014.

The i3 will be available for 450,000 yuan ($72,000), which is cheaper than most analysts expected. It is cheaper than Tesla's Model S, which goes for 648,000 yuan in China.

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