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

Toyota Motor will establish a wholly owned company in Shanghai to develop and produce electric vehicles and batteries for the Lexus brand, with production set to start in 2027, the world's top-selling automaker said on Wednesday.

By bno - Taipei Bureau Toyota Motor Corp. has revealed plans to establish a wholly-owned electric vehicle (EV) and battery manufacturing facility in Shanghai, China. In doing so, the Japanese car giant is marking a significant departure from its traditional joint venture approach in the country according to AFP.

Toyota Motor (NYSE: TM) is set to establish a wholly owned company in Shanghai to develop and manufacture electric vehicles (EVs) and batteries for its Lexus brand, with production slated to begin in 2027.

Toyota's partnership with Shanghai aims to support carbon neutrality, focusing on green tech like hydrogen energy and electric vehicles. The company plans a new subsidiary in Shanghai to produce BEVs.

Japan's Toyota said Wednesday it will build an electric vehicle plant in Shanghai for its luxury Lexus brand as it raised its annual net profit forecast to almost $30 billion.

Toyota shares are climbing higher on the back of upbeat guidance, and the Japanese giant’s plans to set up a wholly-owned EV unit in China.

Toyota is developing and making electric vehicles and EV batteries in China under a new partnership with the Shanghai government

Toyota's push also comes as worries grow around Asia about a potential trade war brewing after President Donald Trump imposed tariffs on Chinese goods and China retaliated with tariffs to take effect next week.