Samsung SDI held a ground-breaking ceremony on Thursday for its new cylindrical battery-making plant in Malaysia.

The company will invest 1.7 trillion won ($1.3 billion) in the new battery factory to have its construction finished by 2025 in response to the growing demand for cylindrical batteries.

Starting from 2024, a year before the factory’s scheduled completion, the battery maker will manufacture cylindrical batteries known as 21700, which are a 21-millimeter-wide and 70-millimeter-long cell, under its brand PRiMX.

These batteries will be applicable not only to electric power tools and micromobility, but also to electric vehicles and energy storage systems (ESS).

“This ground-breaking ceremony will be the starting point for us to become a leader in the global battery market by 2030. Successful construction and early stabilization of the factory will make our Malaysian corporation the center of the global battery industry,” said Samsung SDI CEO Choi Yoon-ho.

This plant will be the battery maker’s second battery factory in Malaysia.