VW and China Partner Building $751 Million EV Factory

April 25, 2019 at 11:58 AM

The electric car factory in Hefei, China, being launched by Volkswagen AG and joint venture partner Anhui Jianghuai Automobile Co. will have capacity to make 100,000 EVs per year.

Reuters cites a government agency posting online that put the cost of the facility at 5.1 billion yuan ($751 million). The factory will make the SEAT-branded Sol E20X small crossover vehicle that rides on a co-developed EV platform.

The two companies signed a memorandum of understanding last November to launch their first EV no later than 2021.

Media reports earlier this month indicated that VW is interested in acquiring a “significant” stake in the Chinese company. JAC says no formal discussions have taken place.