BMW and its partner Great Wall Motor stated they prepare to construct a plant in China with a capacity of 160,000 cars annually, and which is going to produce BMW’s electric MINI brand and Great Wall Motor models.
The 650 million euro ($716 million) plant would finish its completion in 2022.
Automakers and providers are scrambling to meet strict new Chinese quotas for less polluting vehicles. Those regulations call for electric and rechargeable hybrid vehicles to represent for a fifth of overall sales by 2025.
The new joint venture Spotlight Automotive, will be based in Zhangjiagang near Shanghai and eventually hire 3,000 staff.
Previously this month, Great Wall gained domestic regulatory approval for the new plant.
Great Wall is China’s top sport utility vehicle and pick-up truck maker. It also constructs Ora, an affordable battery electric automobile brand in Baoding, the city where it is based.
BMW is rivaling with competitors such as Volkswagen, which is readying two Chinese factories to construct electric cars next year, and which is going to have a combined production capacity of 600,000 vehicles.
Tesla is aiming for over 500,000 cars annually by building a new factory in Shanghai.