(fxcue news) - Auto major General Motors has signed a deal with South Korean battery maker Samsung SDI to establish a joint venture to build a $3.5 billion plant in Indiana to supply electric vehicle or EV batteries in the United States. The new battery cell manufacturing plant with an annual production capacity of 27GWh initially, is targeting mass production in 2027. Meanwhile, the Wall Street Journal reported that the proposed plant in New Carlisle, Indiana will be operational about a year later than planned. The companies had signed an MOU on a joint EV battery plant in the U.S. in March 2023. According to GM Chair and CEO, Mary Barra, the JV deal indicates the firm's commitment to driving innovation in America. With the agreement, the EV market and GM sales will continue to grow as more customers experience its EVs, the charging infrastructure builds out and the firm expands into more segments. It is expected that the annual capacity of the plant would rise to 36GWh under following expansion plans, and the new facility would create more than 1,600 jobs supporting the local economy. Samsung SDI said in a statement that the new plant will produce NCA-based high-performance nickel-rich prismatic batteries, which are expected to be deployed in upcoming GM electric vehicles. SAMSUNG SDI's prismatic batteries not only improve driving range through high energy density, but also enhance safety with its llic exterior and venting system, it noted. SAMSUNG SDI CEO Yoon-ho Choi, said, "Building on last year's partnership with GM, the No. 1 automaker in North America, we have established a premium battery production hub to lead the U.S. EV market. SAMSUNG SDI will make best efforts to support GM enhance its leadership in the EV market with the company's PRiMX battery products featuring 'Super Gap' technology."