South Korean battery maker Samsung SDI said it will build its first electric vehicle (EV) battery plant in the US with global carmaker Stellantis N.V., joining other local rivals’ moves to tap deeper into the region. The announcement confirms earlier reports that the two recently signed a contract, which paves the way for Samsung SDI to join its domestic rivals, such as LG Energy Solution and SK On, to produce EV batteries in America.

Under the deal, Samsung SDI and Stellantis will begin producing EV battery cells and modules in the first half of 2025, starting with an annual production capacity of 23-gigawatt hours (GWh) and aiming for 40 Gwh going forward, according to the press release.

No details on the amount of investment and the size of the battery plant were provided, reports Yonhap news agency.

The output from the new plant will be supplied to Stellantis’ North America production lines, the US, Canada and Mexico, and will be installed in the automaker’s plug-in hybrid and EV lineups, the companies said. The name and exact location of the joint venture have yet to be decided.

It will be Samsung SDI’s first production plant in the US market and its third overseas production base after the ones operating in Hungary and China. It has a domestic plant in the southern city of Ulsan.

The South Korean company aims to secure a stable supply foothold in America ahead of the free trade agreement among the US, Canada and Mexico, which requires carmakers to sell EVs installed with locally produced parts. The trade deal will take effect in July 2025.