Beijing (ZXZC)- China’s major electric vehicle producer BYD has purchased the use right of an industrial purpose land in the Shen-Shan Special Cooperation Zone, according to the announcement by Shenzhen’s public resource trading center. 

Photo credit: BYD

The announcement shows that lot No. E2021-0013 has an area of 554,000 square meters, with a starting bidding price of RMB403 million ($60.12 million). BYD won the bid at the starting price, and the transaction marked the largest land trade in the Shen-Shan Special Cooperation Zone so far. 

The announcement specified that the permitted purpose of the land would be new energy industry, with a 30-year right of use. The construction on the land should be started within one year of purchase and be completed within three years. 

BYD plans on turning the lot into a BYD auto industry park as the land is right by the other 400,000 square meters land that BYD purchased last year. The two lands will be constructed into a new energy vehicle industry cluster. 

Phase I of the project will involve a total investment of RMB5 billion ($746 million), focusing on manufacturing auto parts and components. BYD expects an annual production value of RMB10 billion ($1.49 billion) after Phase I becomes fully operational. 

In January 2022, BYD appended another RMB20 billion ($2.98 billion) into the second phase of the project, which brought the total annual production value to over RMB100 billion ($14.92 billion).