China's LeEco Says It Will Build A $1.8 Billion Factory To Produce Electric Cars

China-based LeEco has been dubbed the "Netflix of China" as it is a leading provider of streaming video content in the country. The company also manufacturers smartphones, TVs and is now preparing to make a major jump into the electric vehicle market.

According to The Wall Street Journal, LeEco said it will spend 12 billion yuan ($1.8 billion) to build a factory in China, which will produce internet-connected electric cars that will also feature autonomous-driving capabilities.

The company expects to achieve a production capacity of 400,000 fully battery-powered cars per year.

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LeEco will also partner with Faraday Future, a U.S.-based electric car manufacturer that some consider to be a "potential Tesla Motors Inc (NASDAQ: TSLA) killer."

LeEco owns part of Faraday Future and the two companies will also deepen their global partnership in terms of manufacturing, research and development, supply chain as well as charging facilities.

China's government has been making large subsidies available to auto manufacturers looking to expand into the electric vehicle space. The country is hoping to improve the quality of its air due to the tremendous amount of pollution from traditional cars and also cutting its reliance on oil imports.