Samsung SDI, a South Korean battery producer, will collaborate with General Motors to build a $3 billion electric vehicle battery plant in the United States.

South Korean President Yoon Suk Yeol made the declaration while on a six-day state visit to the United States to strengthen economic and security ties between the two long-standing allies.

The South Korean corporation added in a statement that, while the location of the facility has not yet been determined, it is expected to be fully operational and ready to begin mass production in 2026.

According to Samsung, the new factory will have "an annual production capacity of more than 30 gigatonnes-hour" and would create thousands of jobs.

It stated that General Motors would be the only recipient of the battery cells.

According to Samsung SDI CEO Choi Yoon-ho, the batteries that will be produced at the site "will help GM strengthen its leadership in the EV market."

Vietnam, China, Hungary, and other countries already have EV battery plants run by Samsung SDI.

It is a member of the sizable Samsung group, whose flagship company Samsung Electronics is among the largest chip and smartphone manufacturers in the world.

The joint venture will help GM expand its annual electric vehicle capacity in North America "well beyond 1 million units annually", said GM CEO Mary Barra.