BYD, the government of Changchun City in northeast China's Jilin Province and FAW Group signed an agreement on Wednesday for the new energy vehicle maker to establish a power battery production base in Changchun.

Officials from Jilin Province met with BYD Chairman and President Wang Chuanfu in Changchun and witnessed the signing of the agreement, according to information published on the Jilin Provincial People's Government website.

In May this year, it was reported that BYD's battery project, with an investment of nearly RMB 10 billion ($1.5billion), would be located in Changchun International Automobile City.

BYD's power battery subsidiary FinDreams Battery's orders from FAW Hong Qi have been shipped, and BYD's power battery base in Changchun may be designed to support FAW's new energy models.

FAW Hongqi new energy vehicle factory officially started construction from April 15, 2020, and by the end of October 2021, it will be officially completed and put into operation. The project is completed with an annual output of 200,000 new energy passenger cars production capacity.

According to the data recently released by China Automotive Battery Innovation Alliance, BYD's power battery installed volume in June was 1.73GWh, with a market share of 15.6 percent, ranking second.

From January to June, BYD ranked second with an installed base of 7.65 GWh and a market share of 14.6 percent.

In addition, BYD's total installed capacity of new energy vehicle power batteries and energy storage batteries in June 2021 was about 2.777 GWh, and the total cumulative installed capacity in the first half of this year was about 12.707 GWh.