China announced on Tuesday that it has approved two electric car projects worth 6.15 billion yuan ($896 million).
After completion, the two projects will boast a combined output of 115,000 electric cars, according to a statement by the National Development and Reform Commission.
The approval came as the central government has intensified efforts to encourage the use of new energy vehicles to ease pressure on the environment, including tax exemptions, discounts for car purchases and an order for government organisations to buy more new energy cars, Xinhua news agency reported.
China sold 507,000 new energy vehicles last year, an increase of 53 per cent year on year.
Sales of pure electric vehicles surged 65.1 per cent year on year to 409,000, accounting for 80 percent of new energy vehicle sales.
An earlier guideline by the State Council said China will build more than 12,000 new charging stations before 2020 to fulfil the demands of over 5 million new energy vehicles.