China's LeEco to invest $1.8 bn in electric car factory
The plant is expected to have an annual production capacity of 400,000 battery-powered vehicles
Jia Yueting, LeEco’s founder and chairman, gestures as he unveils an all-electric battery concept car in Beijing on April 20. LeEco plans to invest $1.8 billion to build a plant in China to produce smart, internet-connected electric cars. PHOTO: REUTERS/DAMIR SAGOLJ
Chinese technology and entertainment company LeEco plans to build a 12 billion yuan ($1.8 billion) factory in China to produce smart, internet-connected electric cars.
The plant, which will be based near the picturesque Mogan Mountain in the eastern Zhejiang province, will have a production capacity of 400,000 battery-powered vehicles a year, the company said on Wednesday.
The facility will be part of a proposed $3 billion theme park featuring auto-related elements. All vehicles in the park will be electric, shared and autonomous-driving, LeEco said.
It didn’t say when construction on the park or factory would start.
“The Moganshan project will be open to all LeEco’s strategic partners including Faraday Future in terms of marketing and exhibition, car sharing and auto financing,” said Jia Yueting, LeEco’s founder and chairman.
LeEco and Faraday will deepen their global strategic partnership in terms of manufacturing, research and development, supply chain, and charging facilities, he said.
Faraday Future, backed by LeEco, is building a factory in North Las Vegas, Nev., and aims to begin selling a car in the U.S. next year.
Huge government subsidies have fueled electric car sales in China, where the government hopes to cut reliance on oil imports and reduce air pollution. The government also hopes that Chinese companies could pioneer the world’s electric car market.
Beijing’s ambition, as well as Tesla Motors Inc.’s initial success, has inspired dozens of new entrants to the world’s largest automotive market.
Wanxiang Group Corp., a Chinese auto-parts maker that owns electric-car maker Karma Automotive Inc., plans to build a $375 million plant to produce electric vehicles. Wanxiang doesn’t now build cars in China and its plan is under review by China.
Other China startups include NextEV, which is backed by internet giant Tencent Holdings Ltd. and Sequoia Capital, and Future Mobility Corp., backed by Tencent and Foxconn Technology Group, which assembles Apple Inc.’s iPhones.