Samsung SDI will build a car battery plant in China. The company, which is the world's largest producer of lithium-ion batteries, said Thursday it signed a memorandum of understanding with Shaanxi Province and Chinese parts maker Anqing Ring New Group to build the plant.
The Chinese parts maker is the No. 1 manufacturer there of automotive engine pistons and cylinders.
Samsung SDI and Anqing Ring New Group will build the plant by early next year near a chip factory run by Samsung Electronics in Xian.
A Samsung SDI spokesman said, "We expect synergy from Anqing's knowhow in automotive parts and Samsung SDI's battery technology."
Samsung SDI supplies car batteries to BMW and other major carmakers. It decided to build the plant in China due to the country's potential of becoming the world's top market for electric cars.
The Chinese government recently announced a plan to supply 5 million EVs by 2020.