(Yicai Global) May 18 -- German luxury carmaker BMW will begin the production of next-generation battery electric vehicles and power batteries in Shenyang, in China’s northeastern Liaoning province, where its Chinese joint venture BMW Brilliance is based, in 2026.

BMW will invest CNY10 billion (USD1.4 billion) to build a sixth-generation power battery plant of 240,000 square meters, five times bigger than its existing one, BMW Brilliance’s Director Nord Kovach said, according to the statement the German firm released today.

The new factory, expected to build a local supply chain and create 2,000 jobs, will make cells, motors, and components for high-voltage power batteries for BMW’s next-gen BEVs, Kovach noted.

The second stage of BMW’s research and development center in Shenyang has been completed. Seventeen of the 19 laboratories are being used to test new energy vehicles, further enhancing the company’s development and verification capabilities in China.

Munich-based BMW plans to release the battery electric cars BMW iX1 and BMW i5 this year and next year, respectively.

BMW established a 50-50 JV with China’s Brilliance Auto in 2002. Last year, it invested EUR3.6 billion (USD3.9 billion) to raise its stake in BMW Brilliance to 75 percent, becoming the first international luxury automaker to own a controlling stake in its China JV.

BMW Brilliance has invested nearly CNY100 billion (USD14.2 billion) since 2010. It paid CNY48.5 billion in taxes last year, remaining Shenyang’s biggest taxpayer for the 17th year in a row, BMW said.

Editor: Futura Costaglione