China's Le Holdings Co, popularly known as LeEco, has revealed it has allocated 12 billion yuan ($1.8 billion) to set up an electric car factory in eastern China, with a production capacity of 400,000 vehicles per year.

LeEco plans to build the plant in two phases in Deqing county in Hangzhou. The company has not given a specific timeframe for the project.

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The factory is part of LeEco's $3 billion "Eco Experience Park" project that will include an entertainment park, internet-connected electric cars facilities, and offices, Reuters reported.

It also backed by Los Angeles-based electric car startup Faraday Future, which is building a $1 billion electric vehicle plant in Nevada. The Wall Street Journal reported that Faraday Future and LeEco plan to team up on electric-car development, manufacturing, research, and supply chain. Faraday also revealed its plans to establish another factory in Vallejo, California.

The new plant "will be open to all LeEco's strategic partners including Faraday Future," Jia Yueting, LeEco's CEO, said. According to Engadget, the new factory will only cater electric vehicles with connected and self-driving features.

Karma Automotive, owned by Wanxiang Group, also intends to produce electric cars in China and plans to build a factory with an annual capacity of 50,000 units per year in Hangzhou. The company is poised to shell out 2.5 billion yuan ($375 million) to realize the project.

The rush for electric vehicles both by non-automakers and start-ups has seen more than 200 Chinese firms creating 4,000 new models and introducing various prototypes at car shows.

TagsLeeco, Faraday Future, Electric Vehicles, Electric vehicles in China, Eco Experience park