The joint venture (JV) between French automotive company Renault and Chinese automaker Dongfeng is planning to build a mid-sized all-electric sedan for the Chinese market.
The JV Dongfeng Renault Automotive Company (DRAC) said that the new vehicle would be based on the Fluence Z.E.
DRAC CEO Jacques Daniel said: ''This EV agreement illustrates Renault's engagement as partner of COP 21.''
Unveiled at the 2009 Frankfurt Motor Show, the Fluence Z.E is an all-electric vehicle that was the first electric car enabled with battery swapping technology and deployed within the Better Place network in Israel and Denmark in 2012.
Battery swapping technology enables the driver to swap a low battery with a fully charged one by going through a battery switch station.
However, the five-passenger, electric sedan failed to make its mark in the market and the company decided to discontinue the car in November 2013.
The electric car is part of DRAC's strategy to expand its line up of vehicles in Chinese market.
DRAC plans to have a line up of five model vehicles in the country which include two SUVs, two saloons and one electric vehicle. The Wuhan plant in the capital of Hubei province was announced in 2014 which would require an investment of $1.28bn.
The company is currently installing assembly lines at the plant after completing construction with production scheduled to start in 2016.
DRAC expects the plant to produce around 150,000 cars annually and it is aiming to push the production to 600,000 vehicles per year by the end of the decade.
The new vehicle will be commercialised under a local Dongfeng brand for the Chinese market only.
