Shanghai (ZXZC)- On Feb. 6, BYD broke ground on its new energy vehicle (NEV) auto parts industrial base in Fufeng county, Baoji city, Shaanxi province, according to baojinews.com, a local news agency of Baoji city.

The said project, which BYD Company Limited signed up for on Nov. 9, 2022, involves a total planned investment of 5 billion yuan ($732.73 million), 3 billion yuan ($439.638 million) of which would be poured in the first phase.

Photo credit: baojinews.com

Covering an area of around 1,400mu (933,300 square meters), the first-phase project will carry out the construction of the production lines for vehicle wiring harnesses, shock absorbers, sunroofs, seat covers, power batteries, and other NEV-related components.

According to baojinews, the completed first-phase project is expected to generate an annual production value of more than 10 billion yuan ($1.465 billion) and yearly tax revenue of over 500 million yuan ($73.273 million), creating around 17,000 jobs. The second phase is scheduled to involve 2 billion yuan ($293.092 million) worth of investment.

BYD’s boom in new energy vehicle business significantly flows from its powerful vertical integration capability. Aside from the Baoji-based facility, BYD forged a strategic partnership with the municipal government of Xuzhou city, Jiangsu province in last Nov. as well, while its power battery subsidiary, FinDreams Battery, inked an agreement with Xuzhou Construction Machinery Group Co., Ltd. ("XCMG"), a Xuzhou-based state-owned heavy machinery manufacturer, for a joint-venture project. Through the cooperation, BYD planned to build a new power battery plant in Xuzhou Economic & Technological development Zone.