NANJING - Leading Chinese new energy vehicle (NEV) maker BYD will set up an industrial base for passenger vehicles and key components in the city of Changzhou, East China's Jiangsu province.

The strategic cooperation agreement on the project was signed between BYD and the municipal government of Changzhou Thursday, according to the local government.

With a total investment of 10 billion yuan ($1.5 billion), the base is designed to produce 400,000 NEVs each year with an annual output worth of 50 billion yuan.

The company also plans to establish a research and development center in the city in the future.

BYD Chairman Wang Chuanfu said this project will make the company's passenger car network complete in China along with its existing bases in Shenzhen, Xi'an and Changsha, which will benefit Changzhou with the addition of new job opportunities.