Samsung SDI Co., a battery making unit of South Korea’s largest conglomerate Samsung Group, will be supplying lithium ion battery cells to Lucid Motors Inc., an electric vehicle startup based in California, the United States.

According to multiple sources from the chemical industry and Fortune magazine on Thursday, Lucid Motors has signed a partnership agreement with Samsung SDI and selected the company to be its major supplier of batteries for its electric vehicles.

Under the partnership, Lucid Motors and Samsung SDI will jointly develop electric vehicles using next-generation cylindrical cells, which are known to outperform current battery technology in terms of energy density, calendar life, and safety. The cells are expected to be developed so that they are adequate for electric vehicle charging environment such as fast charging.

Lucid Motors plans to develop and introduce a high-end sports sedan in 2018 equipped with Samsung SDI’s cylindrical battery, which can travel more than 644 kilometers on a single charge and complete the zero to 100 kilometers per hour in just 2.5 seconds.

Lucid Motors, formerly known as Atieva, was founded in 2007 as a battery technology company before it shifted focus to producing and selling electric vehicles. Many former employees of electric vehicle manufacturer Tesla Motors and Mazda work for Lucid Motors. Last month, it announced that it will invest $700 million to build a manufacturing facility in Arizona that can produce 20,000 electric vehicle units every year.

The lithium ion battery cell Samsung SDI will be supplying is the 21700 type that is 21 millimeters in diameter and 70 millimeters in length. It has 50 percent more capacity than the previous 18650 type (18 millimeters in diameter and 65 millimeters in length). The company is expected to position itself as an industry leader in standardizing next-generation cylindrical battery cells as they are more cost effective.

Shares of Samsung SDI ended Thursday 4.2 percent higher at 94,500 won ($81.5).

By Lee Dong-in

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