Volkswagen has signed a joint venture agreement with the Chinese automaker Anhui Jianghuai Automobile (JAC) to develop EVs for the Chinese market. The agreement provides for the construction of a new factory and an R&D center.

The new JV is expected to produce its first jointly developed EV in 2018. It will also develop and produce components for new energy vehicles, as well as vehicle connectivity and automotive data services. The companies also plan to establish new used vehicle platforms.

The Volkswagen Group’s objective is to deliver 400,000 EVs to the Chinese market in 2020 and 1.5 million in 2025. 11 brands of the Volkswagen Group are currently represented in China.

“The new partnership is a further milestone in our electric offensive in China,” said Volkswagen Group CEO Matthias Müller. “Just as we have played a key role in shaping mobility together with our partners in China over the past 30 years or more, we want to play our part in shaping the mobility of the future: electric, fully networked and in line with the needs of our customers.”

Source: Volkswagen via Green Car Congress