Robert Bosch GmbH and South Korean company Samsung SDI, (Samsung Electronics) announced a deal on Monday to begin manufacturing lithium ion batteries for hybrid cars by 2011.
The new company will be called SB LiMotive Co. Ltd. and will be a 50-50 joint venture between the two giants. Work will begin in September with both Bosch and Samsung putting in an initial startup cash of USD $10 million each, with another USD $500 million expected in the next four to five years.
According to Samsung, SB LiMotive aims to take at least 30 per cent of the hybrid battery market in the future.
The location of the factory is still undetermined as are factory capacity details, however the plan is to produce battery cells first before packing entire units by around 2011.
Samsung already produces lithium ion batteries for laptops, mobile phones and power tools.