Asian Tech Press (OCT 19) -- Samsung SDI and Stellantis Group have signed a memorandum of understanding to set up a power battery joint venture in the U.S. to produce electric vehicle batteries.

The two parties are reportedly planning to start constructing a battery factory in the U.S., but the investment amount and scale and location have not yet been disclosed. However, construction is expected to begin in the second quarter of 2022, and production will begin in the first quarter of 2024.

Samsung SDI is part of Samsung Electronics. The company has already established electric vehicle battery plants in South Korea, China and Hungary, with customers including BMW and Ford Motor.

Samsung SDI plans to have a detailed investment plan in place by the end of 2021, and the location of the battery joint venture is under review and will be announced later, according to people familiar with the matter.

Stellantis just reached a preliminary agreement on Monday with South Korean battery maker LG Energy Solutions to produce cells and battery components for the North American plant.