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

Toyota Motor Corporation, Japan’s leading automaker, announced this week that it plans to establish a wholly-owned subsidiary in China to produce battery electric vehicles (BEVs) under its luxury Lexus brand.

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.”