Shanghai is set to welcome a new major player in the electric vehicles, or EV sector after the Shanghai Municipal Government and Japanese auto giant Toyota Motor Corporation signed an agreement on April 22, paving the way for a Lexus EV production plant in the city.

The agreement details the establishment of a fully-owned Toyota plant in Shanghai that will focus on the research and development, manufacturing and sales of EVs.

It will manufacture Lexus battery electric vehicles and Toyota's advanced power batteries — representing another significant foreign investment in Shanghai's rapidly expanding EV industry in the wake of Tesla's Shanghai Gigafactory.

The Lexus EV project, with a total investment of 14.6 billion yuan ($2 billion), is said to underscore Shanghai's commitment to its high-level opening-up, technological innovation — signifying the development of a world-class EV cluster.

The plant will be located in Shanghai's Jinshan district, with the initially allocated land covering about 112.8 hectares.

According to the Shanghai Xinjinshan Industrial Investment Development Co, construction will start in June this year, with the first vehicle expected to roll off the production line in 2027.

Aside from manufacturing, the agreement outlines collaboration across the EV value chain — encompassing areas such as partnerships with upstream and downstream enterprises, autonomous driving, hydrogen energy, battery recycling and supply chain logistics.

The goal is to create benchmark projects both in China and globally, contributing to green and low-carbon transition goals.

To support the project, Jinshan has been liaising closely with Toyota since last October, streamlining the land allocation process.

The district is currently home to 159 auto industry chain companies, including 96 above-designated-size enterprises — those with annual revenue at or above 20 million yuan — 64 innovation-driven enterprises and 10 "little giant" enterprises.

 

Source: Jiefang Daily