Battery maker Samsung SDI has signed a deal that will results in the South Korean firm establishing a lithium-ion cell factory in China.

Terms of the deal are scarce at the moment, but we do know that Samsung intends to break ground on the factory in the city of Xi'an later this year and that it should be operational sometime in 2015.

As Reuters reports:

"Samsung SDI, an affiliate of Samsung Electronics Co Ltd, will form a joint venture in China by April to invest $600 million in the factory in Shaanxi province and in other electric car battery-related businesses over the next five years."

"The joint venture will consist of Chinese parts maker Anqing Ring New Group and a company owned by the government of Shaanxi province."

Samsung SDI Manufactures Several Lithium-Ion Cells, Including This 18650 One

Samsung SDI Manufactures Several Lithium-Ion Cells, Including This 18650 One

According to Reuters, Samsung's Chinese factory could "cater for current customer BMW as well as car makers such as Volkswagen AG who are rushing into electric cars in China."

Let us not forget that Tesla has some sort of deal with Samsung SDI reportedly in the works.  It's not out of the question to think that Samsung setting up a li-ion cell factory in China could by linked to Tesla's launch of the Model S in China and perhaps even Tesla establishing a future produciton site in China.

Source: Reuters