BEIJING, July 8 (Reuters) – Chinese electric vehicle manufacturer BYD has signed an agreement to invest 6.5 billion yuan ($894.2 million) in a new factory dedicated to producing core parts for new energy vehicles. This significant investment aims to bolster the manufacturing capacity of BYD’s existing facility in Shenzhen, as reported by state-backed Securities Times on Monday.

The project underscores BYD’s commitment to expanding its production capabilities and supporting the growing demand for electric vehicles. According to local television reports, the new factory will enhance the company’s ability to meet market needs and strengthen its position in the competitive new energy vehicle sector.

This move comes as part of a broader strategy to increase BYD’s footprint in the electric vehicle market and contribute to China’s ambitions for greener transportation solutions.