(Yicai Global) Sept. 8 -- The government of Jianyang in China's southwest province of Sichuan recently signed a formal agreement with FDG Electric Vehicles Ltd. [HK:0729] and Kunlun Stone Investment Buyout Funds to build electric passenger vehicle and lithium-ion traction battery facilities in the city with a total investment of USD2.46 billion (CNY16 billion), Scol.com.cn reported on Wednesday.

Located in Chengnan Industry Park, the project encompasses new energy vehicle and traction battery production lines, a research and development center, a procurement center, and charging piles and stations. The NEV facilities, whose projected production capacity is 400,000 units a year, will receive USD2 billion (CNY13 billion) in backing. The battery project, whose annual production capacity is four gigawatt-hours, will get USD460 million (CNY3 billion).

Once it reaches its designed production capacity, the project will generate USD15.38 billion (CNY100 billion) in revenue per year.

FDG Electric Vehicles is an NEV manufacturer with a global vision, specializing in NEV vehicle and core component development, production and sales. Hangzhou Long River EV Co., in which FDG holds a controlling stake, was the second electric passenger vehicle producer officially licensed by the Chinese government. Its product lines cover most businesses along the industry chain ranging from batteries and design to vehicle manufacturing, making Long River a competitive player in the field.

Kunlun Stone Investment Buyout Funds is a state-owned investment fund specializing in the public-private partnership, investment, acquisition and merger, and asset reorganization businesses. Shenzhen Huanong Century Asset Management Co. is its controlling shareholder.