By Kwanwoo Jun

Samsung SDI Co.'s shares rallied Monday after news reports that it and General Motors Co. plan to launch an electric-vehicle battery joint venture in the U.S.

Shares of the South Korean battery maker rose as much as 5.9% to 774,000 won in morning trade, putting the stock on course to post its strongest daily percentage gain in more than four months and outperforming the broader stock benchmark Kospi's 1.1% gain.

The rally came after South Korean media during the weekend reported that Samsung SDI and GM could jointly build a KRW5 trillion ($3.86 billion) battery plant in Michigan, with both sides reportedly set to sign a memorandum of understanding on the project on March 8.

Samsung SDI officials weren't immediately available for comment on the news reports.

The Samsung SDI-GM plant, if built, could have annual battery production capacity of up to 50 gigawatt hours, enough to make 600,000 EVs, according to the reports.

Samsung SDI is currently building a separate JV battery plant with Stellantis NV in Indiana.

Write to Kwanwoo Jun at kwanwoo.jun@wsj.com

(END) Dow Jones Newswires

March 05, 2023 23:51 ET (04:51 GMT)

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