Audi, Volkswagen Group's luxury marquee, has officially partnered with China-based FAW Group to begin building a $3.3 billion electric vehicle plant that will be jointly operated. According to various reports, Chinese authorities granted approval for the project on February 11, 2022.
Audi already has an established partnership with FAW Group to jointly manufacture gas-powered cars in Changchun. However, it signed an agreement with the group back in October 2020 with the intent to jointly produce luxury EVs in the future.
A Volkswagen Group spokesperson officially confirmed the recent approval and provided the following comments. However, FAW Group hasn't yet provided a statement about the factory approval.
"The Audi FAW NEV project is an important cornerstone of Audi’s electrification strategy in China."
"We are consequently pushing forward the relevant works in this project. The construction of the plant is planned to start in the second quarter of 2022."
Audi and FAW Group plan to begin construction of the plant this April 2022. It will be located in Changchun city, which is the capital of the Jilin province. Together, the two companies have announced plans to invest a total of about $3.3 billion on the upcoming joint venture factory.
According to Automotive News, initial production at the upcoming facility won't begin until December 2024. The factory will be able to produce some 150,000 EVs annually, with plans to manufacture three different models, including the Audi e-tron crossover.
The joint venture with FAW Group isn't Audi's only electric vehicle plan for China. In fact, Audi says that by 2025, a third of its car sales in China will be electrified models. In addition to FAW Group, the German luxury brand is also working with SAIC Motor, which is based in Shanghai.