Lexus breaks ground on Shanghai EV plant to anchor trillion-yuan auto hub

Shanghai's Jinshan District is fast-tracking its transformation into a major electric vehicle hub with the launch of Lexus's flagship new energy project.

Photo by Kuang Da

Photo by Kuang Da

by YANG Shuhongji

On June 27, construction officially began at the Lexus New Energy Project in Shanghai Bay Area High-tech Zone. Backed by a total investment of 14.6 billion yuan, the wholly owned factory spans 1,692 mu (about 279 acres) and is scheduled for completion in August 2026. The first electric vehicle is set to roll off the line in 2027, with an initial annual capacity of 100,000 units.

Construction officially began at the Lexus New Energy Project in Shanghai Bay Area High-tech Zone. Photo from Jinshan District

Officials said the project is central to Jinshan's ambition to create a trillion-yuan modern automotive cluster, integrating electric vehicles, advanced batteries, hydrogen energy and smart mobility. Local authorities have compressed approvals that would typically take months—streamlining land consolidation across 20 parcels in just 49 days—to secure the plant's timely start.

Jinshan has also worked to link Lexus with domestic suppliers. According to the district's investment promotion office, Toyota has already assessed several Yangtze River Delta companies on capabilities and delivery timelines. Multiple suppliers plan to set up facilities nearby to support a "two-hour supply chain."

To attract skilled workers, Jinshan is rolling out tailored recruitment programs and has designated over 2,000 apartments, along with international schools and medical services. The district has established a talent database and offers one-stop support for housing, visas and benefits.

Jinshan is encouraging local colleges such as Sino-British College to adjust curricula to train EV technicians. Plans are underway with Toyota to build a dedicated training center to produce application-focused talent and highly skilled technical talent.

Jinshan officials said the project demonstrates Shanghai's commitment to fast-tracking high-quality foreign investments while strengthening local industry ties and community infrastructure.