A smart electric vehicle industrial park jointly built by NIO and the city of Hefei, where it is headquartered in China, will start construction on April 29, William Li, the company's founder, chairman, and CEO, said on April 7.

It's a world-class industrial park that involves research and development, manufacturing, lifestyle services, and automotive culture, Li said.

This park is equivalent to an industrial cluster and will soon house some leading industry chain companies, Cls.cn said, citing 's source, adding that a new NIO factory will also be located here.

On Feb. 4 this year, the Hefei government and NIO signed a framework agreement to deepen cooperation, agreeing to jointly plan and build the park and turn it into a world-class intelligent electric vehicle industry cluster with a complete industrial chain.

According to the agreement, Hefei will increase its support for the intelligent electric vehicle industry, introduce more high-quality enterprises in the industry chain to the park, and provide supporting policy for enterprises in the park in terms of construction, funding, and talents.

NIO will carry out long-term development planning and layout around the park, establish R&D and manufacturing, marketing, and management teams in the park, and help Hefei introduce high-quality industry chain enterprises.

The main body operating this new project is a joint venture set up in March by JAC Motor and NIO named Jianglai Advanced Manufacturing Technology in Hefei.

JAC said the reason for setting up Jianglai is that JAC and NIO want to strengthen cooperation in advanced manufacturing and service management, supply chain, and other aspects in the field of intelligent network-connected new energy vehicles.

NIO has been produced by JAC's foundry since its first car, the ES8, and currently has a capacity of about 10,000 vehicles per month, Li said.

NIO's actual monthly production capacity is less than 7,500 units due to a tight supply of chips and batteries, but the situation will be alleviated in the third quarter of this year, Li said.

Li previously said its ultimate goal in China is to reach 1 million deliveries a year, and a new factory is imminent to reach that goal.

The current plant can't support NIO's subsequent growth plans, so building capacity and an R&D team in Hefei will be accelerated, Li said.