The Nikkei reports that Primearth EV Energy (PEVE) Toyota Motor’s battery-making , will build its fourth hybrid vehicle battery plant in China as Beijing expands government incentives for low-emission autos.revp

This new plant will be capable of producing roughly 100,000 batteries a year, quadrupling the total capacity in China to about 400,000 units. PEVE produces NiMH batteries for hybrids at a joint-venture factory in China’s Jiangsu Province.

Beijing has been promoting new-energy vehicles—including electric cars and hydrogen fuel cell vehicles. Gasoline-electric hybrids are currently not considered new energy vehicles, but Beijing looks set to reclassify them as such, granting hybrids more favorable treatment.