A factory capable of producing 20,000 electric powered vehicles a year is now under construction in the northern port city of Tianjin.
The plant will produce cars powered by battery, hybrid power and fuel cells.
The plant covers an area of 16.5 acres, including a production base, a research and development center and a testing center.
The Tianjin Qingyuan Electric Vehicle Co. Ltd. (QYEV) will invest 165 million yuan (21 million U.S. dollars) in the plant.
It is expected to be completed at the end of 2007.
The QYEV exported 112 battery-powered minibuses to the United States in 2005 and is expected to export more than 500 to the United States in 2006.
The company predicts its annual exports will reach 5,000 electric cars to the U.S and another 5,000 to European and Asian markets within three to five years. .