LeEco Investing $1.8B in Chinese Electric Car Plant

LeEco will be investing 12 billion yuan ($1.8 billion) to build a plant in China capable of producing 400,000 electric cars per year.

Known for its LeSee electric concept car and alliance with Faraday Future, LeEco said that its first China factory will be built in two phases. The plant will be built in Deqing county near the eastern Chinese city of Hangzhou, but there’s been no finish date set yet, the company said in a statement reported by Reuters.

LeEco says the facility is part of a larger project to create an “Eco Experience Park” that will include an entertainment park and facilities for internet-connected electric cars and offices. It will cost the company 20 billion yuan (about $3 billion) to set up Eco Experience Park.

The city of Hangzhou might become the location of another electric car plant, built by Karma Automotive investor Wanxiang Group. Wanxiang Group has asked for Chinese government approval to build a plant in the same city where the automotive components manufacturing company is headquartered.

SEE ALSO: Also Funding Faraday Future, LeEco Shows Its Own Autonomous EV Concept

LeEco and Wanxiang are among several Chinese companies moving forward on plans to build plug-in electrified and hybrid vehicles. It’s being spurred by the Chinese government’s incentives to promote switching over to clean energy as a replacement for petroleum to fuel vehicles.

LeEco founder Jia Yueting has also invested in the Faraday Future plant being built near Las Vegas. LeEco has also assisted another start-up, Atieva, as well as working with Aston Martin on the electric RapidE, for which LeEco designed a new infotainment system. LeEco is a major supplier of smartphones in the China market.

In April, LeEco unveiled what it calls LeSee, an all-electric concept car with autonomous vehicle capabilities.

Reuters