Pingshan-based BYD Co. will invest 3 billion reais (US$624 million) in Brazil to build its first electric vehicle (EV) plant outside Asia as it seeks to extend its geographical reach amid a global surge in sales.

The fully-electric and plug-in hybrid maker, which rivals Tesla Inc. as the world’s largest producer of EVs, plans to build a production complex in the northeastern state of Bahia, according to a statement. The facility will include hybrid and electric car production, a unit focused on chassis for electric buses and trucks, and one to process lithium and iron phosphate for the international market. Operations are expected to start by 2024.

The site will be BYD’s first outside Asia, where the company also plans to invest in Thailand and Vietnam. The decision follows efforts by Brazil’s government to deepen ties between Latin America’s largest economy and China, and to woo top companies to invest in the country. This efforts will accelerate investments, particularly in sustainable projects, and help boost growth, according to Stella Li, global vice president of BYD.

The BYD factory will have an initial annual capacity of 150,000 units, with the potential to reach 300,000 units. BYD expects the investment will attract local suppliers that can specialize on the production of electric and hybrid vehicles. The site will generate more than 5,000 jobs.

It will be the second facility dedicated exclusively to electric and hybrid cars in Brazil. Two years ago, China’s Great Wall Motors agreed to buy a Daimler AG factory in Sao Paulo, pledging investments of 10 billion reais by 2032.

BYD has been in Brazil since 2015, when it opened an electric bus chassis factory in Sao Paulo. Later, it started producing photovoltaic modules in the same region and lithium iron phosphate batteries in Amazonas state.