(Yicai Global) March 1 -- Chinese battery manufacturer Camel Group Co. and Croatian supercar maker Rimac Automobili have agreed a joint venture to set up a CNY1 billion (USD158.7 million) factory in Xiangyang, China's central Hubei province, capable of producing 300,000 new energy vehicle motors per year.

The two parties will establish a joint venture worth EUR12.5 million focused on research and development, production and sales of NEV transmission systems, battery systems and car electronics, the Xiangyang-based firm said in a statement.

Construction of the plant's first phase will start this year at a cost of CNY200 million, with initial capacity of 50,000 units per year. The factory will reach full capacity within five years. The plant will feature development and production facilities for electronic controls and traction battery management systems.

Local authorities at the Xiangyang High-tech Industry Development Area will provide USD11.9 million (CNY75 million) in financial incentives to the joint venture for the first phase, to be paid in three installments.

Rimac is a high-tech developer and producer of high-performance electric vehicles, transmission systems, battery systems and automotive electronics and infotainment systems. Its Concept One is one of the best electric supercars in the world today, Camel Group said in the statement.

Camel Group bought into the Croatian carmaker with an EUR27 million investment in a private share placement last July, though its exact shareholding remains unknown. The firms announced their intention to form a partnership last September.