Correction: The initial headline incorrectly stated RMB 6.5 billion as $6.5 billion.

The industrial park, which is adjacent to the Xiaomo Port, has already put into production the first phase of components and the second phase of vehicles.

BYD (HKG: 1211, OTCMKTS: BYDDY) today signed a deal with the authorities of the Shen-Shan Special Cooperation Zone to build the third phase of its industrial park in the area, according to a report in the Shenzhen Special Zone Daily.

The three-phase project, with a total investment of RMB 6.5 billion ($890 million), will be used to build battery-pack production lines and a core parts factory for new energy vehicles (NEVs), according to the report.

The Shen-Shan Special Cooperation Zone was established in February 2011 as an enclave of Shenzhen. The zone originally belonged to Shanwei city in Guangdong province, but is now managed by the Shenzhen municipal government.

In August 2021, BYD signed an agreement to invest RMB 5 billion to build the first phase of the industrial park to produce auto parts.

On January 30, 2022, BYD committed to invest an additional RMB 20 billion to build the second phase of the industrial park as a vehicle manufacturing base.

In October 2022, the first phase of the park was put into operation. In December 2023, the first phase of the project reached its design capacity.

In March, China's Ministry of Industry and Information Technology (MIIT) agreed for BYD to relocate its factory in Pingshan, Shenzhen to the Shen-Shan Special Cooperation Zone.

In June, the second phase of the park reached its design capacity, producing 750 NEVs per day, according to information released by the Shenzhen government last month.

The park is adjacent to Xiaomo International Logistics Port, BYD's only industrial park currently built adjacent to a port.

BYD's NEVs that come off the production line at the industrial park are just a five-minute drive to the Xiaomo Port, according to information released by the Shenzhen municipal government on June 14.

BYD is China's largest NEV maker, selling 1,612,983 NEVs in the first half of the year, up 28.46 percent from a year earlier, according to data compiled by CnEVPost.

($1 = RMB 7.2695)

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