Baotou Hong Bo Te Technology Co is to cooperate with German Sparky on a rare earth permanent magnet motor and power tool product project with a cooperation framework agreement signed on June 28, reports Baotou Daily.

The project will develop a rare earth permanent magnet motor production line for electric scooters, electric bicycles, electric motorcycles and electric automobiles with an annual production capacity of 5 million units, as well as an intelligent production line designed to assemble more than 160 kinds of power tools.

Total investment will reach 1.08 billion yuan ($163 million) and the project will be divided into three phases. The total construction period will be 5 to 10 years. After completion, annual sales are expected to reach 2.18 billion yuan.

The Baotou-based technology company has been approved for 120 mu (eight hectares) of land in the Inner Mongolia Rare Earth New Materials Industrial Park for the first phase of the project. It is expected that the first phase will start construction in October 2018.