Shanghai (ZXZC)- Enovate Motors last week inked an agreement with Sumou Holding to build a joint venture for new energy vehicle (NEV) production in Saudi Arabia, according to a press release Enovate Motors issued on Dec. 12.

Under the agreement, the duo will jointly invest a total of US$500 million in the construction of an NEV manufacturing and R&D base, which features a designed annual production capacity of 100,000 NEVs. The base is set to be built in two phases.

Photo credit: Enovate Motors

The last move indicated that Enovate Motors is likely to be both China's and the world's first NEV manufacturer to start vehicle production in Saudi Arabia. The yet-to-be-built facility would become the first NEV manufacturing base under a Chinese brand in this country.

The NEV startup said the new agreement signing signified that Enovate Motors will be supported by the capital strength of Saudi Arabian investors to not only effectively boost its financing progress, but also make foray into the markets of the Middle East, Europe, and America by leveraging Saudi Arabia's relations in the agreements on tariffs and trade.

Enovate Motors is also discussing the investment strategy with Saudi investors and shareholders, including the Saudi sovereign fund and Saudi Aramco.

Enovate Motors was formerly known as Dearcc, which was founded in 2015 and focused on producing mini electric vehicles. The brand "Enovate" was officially launched in 2018 to target a higher-end electric vehicle market. It currently has two production models for sale, namely, the ME5 A+ segment SUV and the ME7 mid-sized SUV.