Samsung SDI Co., a battery making unit of Samsung Group, will be supplying a next-generation cylindrical battery cells to Lucid Motors Inc., an electric vehicle (EV) startup based in the United States.

Lucid Motors is a potential competitor to Tesla Motors in the U.S. market, along with Faraday Future and Nikola Motor.

Samsung SDI announced it has signed a strategic partnership agreement with Lucid Motors to jointly develop EVs using next-generation cylindrical battery cells.

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. The U.S. EV startup announced that it will invest US$700 million to build a manufacturing facility in Arizona that can produce 10,000 electric vehicle units a year.

Under the deal, Samsung SDI will supply its cylindrical battery cells to Lucid Motors' electric sports sedan to be unveiled in the second half of 2018. The car will be able to travel more than 400 miles (644 kilometers) on a single charge and accelerate from 0-60 miles in just 2.5 seconds.

Samsung SDI will supply a 21700 type battery, which has 50 percent more capacity than the previous 18650 type model.