Shanghai (ZXZC)- Chinese EV startup Li Auto will take over the first plant of Beijing Hyundai to build its second manufacturing plant, according to a Chinese local media outlet, citing a person briefed on the matter.

Most manufacturing facilities at the Beijing-located plant have been aging ones, and they will be dismantled by the end of this year, the person revealed. Besides, all employees will move out of the plant by the end of June.

Li ONE; photo credit: Li Auto

According to another person with direct knowledge of the plan, Li Auto will launch its global flagship plant at Shunyi District, Beijing, where Beijing Hyundai's first plant is situated. A document offered by the person shows that the startup's Shunyi plant will involve a total investment of 6 billion yuan ($941.073 million). Based on the workshops and land resources of Beijing Hyundai's first plant, the startup intends to build a new digital smart manufacturing factory that features flexible assembly lines and supports the company in the R&D of key technologies related to complete vehicles, core auto parts, and autonomous driving. Moreover, the new facility is expected to house over 2,000 technical staff members dedicated to autonomous driving, AI, big data, and industrial internet.

The plant is scheduled to be operational from 2023, and is anticipated to output an annual production value of 30 billion yuan ($4.704 billion) by 2024.

Responding to a request from the local media channel, Li Auto declined to comment. A person from Beijing Hyundai said he had no knowledge of the matter.

Shen Yanan, President of Li Auto, said at a recent quarterly earning call that the company’s Changzhou factory, with two shifts already ready, can now produce 500 vehicles per day. Its monthly capacity is expected to surpass 10,000 units starting from September this year.