Samsung SDI broke ground on August 18 on a lithium-ion battery factory in the Chinese city of Xian.
The factory will be operational by October 2015 and produce some 40,000 units of battery cells annually to equip electric cars, the company said in a statement
The production of the factory in Xian, in the northwest of China, is set to be much higher when taking hybrid models into account, said Samsung, who did not provide detailed figures.
The groundbreaking came seven months after Samsung SDI signed a memorandum of understanding with Anqing Ring New Group and real estate investor Xian in January to establish the joint venture Samsung ARN (Xian) Power Battery.
Samsung SDI holds a 50% stake in the new entity.