Shanghai (ZXZC)- Chinese automaker BYD signed a framework agreement earlier this week with the municipal government of Xiangyang city, Hubei province to promote the construction of an industrial park that works on production of power batteries and other businesses, according to a post on the WeChat account "Hubei Fabu", which is owned by Hubei provincial government.

BYD, Xiangyang municipal government signing agreement; Hubei Fabu

The agreement was signed only three months after BYD contacted with local authority for the project. The industrial park will have facilities like power battery production lines, and gather suppliers and resources for the production of core components.

The Xiangyang-based industrial park will be built in three phases. Involving a total investment of 10 billion yuan ($1.576 billion), the first phase is set to work on the R&D and production of power battery cells, modules and other core components with an annual production capacity of 30GWh.

The second phase is planned for a zero-carbon-themed industrial park, where suppliers of cathode and anode materials, copper foils, aluminum foils, separators, electrolyte, and structural parts for battery packs will be introduced.

The third phase will focus on attracting projects related to NEV components, including electric motors, electric control units, air conditioning system, wiring harness, and gears.

“We expect BYD to further strengthen its investment deployment in Hubei province, and step up the partnerships with local players in ICV (intelligent-connected vehicle) and NEV (new energy vehicles) industries,” said Ying Yong, secretary of the Hubei Provincial Committee of the Communist Party of China.