The project will have an annual production capacity of 60 million sets and an estimated annual output of RMB 40 billion.

(Rendering of the project released by Welling.)

"The new energy auto parts base is one of the largest projects ever invested by Midea Group. We hope the base will become a new business card for Anqing and provide strong support for building the third pole of the Anhui automotive industry," said Fu Congjun, vice president of the group and president of Midea Industrial Technology.

Welling's five products from three existing product lines have basically been tested on board and gradually mass-produced, and have brought high-quality products and technical solutions to support a number of globally renowned car companies and car-making new forces, it said.

Over the next decade, Midea will invest $1 billion in technology research to become a system-level solution provider for new energy vehicles (NEVs), Welling's press release said.

On May 18 last year, Welling announced three major product lines, including drive systems, thermal management systems and assisted driving systems.

"I think Midea should leverage its manufacturing capabilities and quality control in the appliance sector, especially considering that the supply chain has become a headache for many carmakers in the last six months. We want to be the fastest-responding supplier in the industry to keep up with the speed of the car companies," Fu said at the time.

Chinese home appliance giant Midea unveils multiple core components for EVs