Samsung SDI to build motor battery factory in China

Samsung plasma display panels are seen?in an exhibition held in Beijing. The world's largest maker of plasma display panels and renewable batteries, signed a deal on Wednesday to build a car battery production facility in Northwest China's Shaanxi province.?[File photo by Sha Lang / Asianewsphoto]

XI'AN - Samsung SDI, the world's largest maker of plasma display panels and renewable batteries, signed a deal on Wednesday to build a car battery production facility in Northwest China's Shaanxi province.

According to the memorandum of understanding, Samsung SDI will team up with two Chinese companies, ARN Group and Xi'an High-Technology Group to build the factory in the Xi'an high-technology zone.

Construction of the factory will start in the second half of the year, and it is set to become operational in 2015. $6 million will be invested in the factory over a period of five years.

There is a growing trend in China for electric cars and plug-in hybrid electric vehicles, which together have been forecast to reach five million units by 2020.

Sang Jin Park, Samsung SDI CEO, said the factory will help the company gain a foothold in the Chinese market, which is becoming the world's largest for electric vehicles.

The Xi'an high-technology zone is a major auto parts production base, featuring a number of new-energy carmakers including BYD, Shaanxi Fast Auto Drive and Euease.