The Japanese giant continues its investment in electric vehicle infrastructure.

Toyota has plans to increase its electric vehicle production capacity by constructing a ¥8.5 billion (AU$1.84 billion) electric car plant in China.

According to a report from Reuters, the plant – which should see a production output of 200,000 ‘new energy vehicles’ yearly – is set to be built in the Tianjin municipality in collaboration with Toyota’s local partner, FAW Group.

FAW Group is a Chinese state-owned carmaker that has entered into joint ventures with Audi, General Motors and Volkswagen to produce their models for Chinese markets.

The new factory will produce plug-in hybrid, full-electric and fuel-cell system vehicles.