Beijing Automotive Group (BAIC Group) signed a new framework agreement with Daimler Group, a vehicle manufacturer based in Germany, to further the partnership in the joint venture firm in E-Town, Beijing Benz Automotive Co.

According to the agreement signed on July 5, BAIC Group and Daimler will together invest 5 billion yuan ($735.46 million) in 2020 to build an electric vehicle production base and a vehicle power battery plant at the Beijing Benz Automotive Co, and introduce the e-vehicle products of Mercedes Benz.

The battery plant, which will cost 600 million yuan, will adopt advanced production standards, facilities and technologies of Germany's "Industry 4.0" strategy as well as conduct R & D of vehicle batteries. Once completed, the plant will be the first vehicle battery factory outside Germany in the global production network of Benz.

"The signing of the framework agreement furthers the partnership between our group and Daimler, and sets a solid foundation for Beijing Benz Automotive to develop into a major producer of Chinese e-vehicles," said Xu Heyi, chairman of BAIC Group.

To satisfy consumer demand for e-vehicles, Daimler, along with BAIC Group, will advance the development of domestic batteries and contribute to making China an innovation base for the global vehicle industry, according to Hubertus Troska, a member of the board of directors at Daimler.

BAIC Group signed a framework agreement with Daimler AG in June to strengthen strategic cooperation in new energy vehicles by attracting investment from Daimler AG in BAIC BJEV, a subsidiary of BAIC Group.