German auto technology firm Bosch is to invest $1 billion in new R&D and manufacturing facilities for electric vehicles in China. The new factory and R&D centre will be built in Suzhou, a city in eastern China. The first phase of the new factory is expected to be completed by 2024.

The investment by Bosch represents a doubling-down in the firm’s investment in the country and follows a visit to China by German Chancellor Olaf Scholz in November, the first visit by a G7 leader in three years. Scholz was accompanied on his visit by a group of leading German industrialists.

“China is the world’s largest auto market, full of promise and vitality. As a multinational enterprise, we need to make full use of the country’s local R&D capability and production capacity,” Stefan Hartung, chairman of the board of management of Bosch, said in the statement.

Bosch employs around 55,000 people in China.