Toyota said Wednesday it will build an EV plant in Shanghai, China. The plant will produce a new Lexus brand EV vehicle.

Toyota’s new factory is said to be minutes away from a railway station in Jinshan, the district branding itself as “Shanghai’s Bay Area.”

China is the world’s largest BEV market, with domestic sales estimated at around 6.7 million units and a further 1 million exported to world markets. Toyota’s hopes the new Lexus plant will help it improve the “supply of products that meet customers' needs in China.”