Samsung plasma display panels are seen in an exhibition held in Beijing. The world's largest maker of plasma display panels and renewable batteries, signed a deal on Wednesday to build a car battery production facility in Northwest China's Shaanxi province. [File photo by Sha Lang / Asianewsphoto]

Samsung SDI, the world's largest maker of plasma display panels and renewable batteries, signed a deal on Wednesday to build a car battery production facility in Northwest China's Shaanxi province.

According to the memorandum of understanding, Samsung SDI will team up with two Chinese companies, ARN Group and Xi'an High-Technology Group to build the factory in the Xi'an high-technology zone.

Construction of the factory will start in the second half of the year, and it is set to become operational in 2015. $6 million will be invested in the factory over a period of five years.

There is a growing trend in China for electric car s and plug-in hybrid electric vehicle s, which together have been forecast to reach five million units by 2020.

Sang Jin Park, Samsung SDI CEO, said the factory will help the company gain a foothold in the Chinese market, which is becoming the world's largest for electric vehicles.

The Xi'an high-technology zone is a major auto parts production base, featuring a number of new-energy carmakers including BYD , Shaanxi Fast Auto Drive and Euease.