Audi has been given the go-ahead to build a new plant for manufacturing electric cars in China, the Volkswagen subsidiary announced at its German headquarters in Ingolstadt on Wednesday.

Following approval by the Chinese authorities, construction work on the plant in the city of Changchun in China’s north-eastern Jilin province is due to begin shortly and is expected to be completed by the end of 2024.

Audi plans to produce some 150,000 electric cars a year at the plant, which is to be run jointly with its Chinese partner FAW.

Initially, Audi plans to build three models at the factory using the jointly developed Audi and Porsche Premium Platform Electric.

“We will start with an electrically powered SUV and an e-sedan,” Audi announced. In addition to the press shop, body shop, paint shop and assembly, the plant will also have its own battery assembly, it added.

Audi boss Markus Duesmann said the new plant would play a “central role in the electrification strategy of the four rings in China.”

Last year, Audi sold 1.68 million cars, including 701,000 in China, representing a 3.6% drop on 2020 sales. The company has blamed the semiconductor crisis for delays with locally produced vehicles, as well as gaps in the networking of the cars.