Volkswagen, JAC to invest over USD 750 million in new electric car factory

Volkswagen AG‘s joint venture with China’s Anhui Jianghuai Automobile Co (JAC) is reportedly gearing up to invest $750.83 million in a new electric car factory in the eastern Chinese city of Hefei.

Reuters citing a document posted online by the Hefei Economic and Technological Development Area reports that Volkswagen and JAC has already obtained approval from environmental authorities to build a plant capable of producing 100,000 all-electric battery cars a year.

A spokesperson for the joint venture speaking to the news agency confirmed about the plan of the company to establish a plant for electric cars, saying the approval represented an “orderly advancement of the project”.

The spokesperson also added that the venture’s first electric model, the E20X, will be launched this year.

Volkswagen has pledged to rapidly ramp up production of zero-emission vehicles as part of its growth strategy in China.