Japanese carmaker Toyota said on Wednesday it will invest 680 million euros on a new production line in the Czech Republic to make a battery electric car.

The line will be built with a government incentive of up to 64 million euros to expand Toyota’s existing plant in Kolin, around 50 kilometers east of Prague, the Czech government and the company said in a joint statement.

For Toyota, this decision signals a further rollout of its strategy designed to make operations carbon-neutral in Europe by 2040, the company said in a statement.

“This advanced technology project will enhance our presence in the European market and contribute alongside our other solutions towards more efficient transportation,” Yoshihiro Nakata, president and CEO of Toyota Motor Europe, said at the event.

It will become the first Toyota plant to produce battery electric cars in Europe.

Prime Minister Petr Fiala said the new line will create another 245 jobs at the factory that already employs 3,200 people.

Toyota did not disclose details of when production would start or of the model.

The world´s top automaker currently makes Aygo X and Yaris Hybrid models at the plant, which made over 225,000 cars last year.

“The automotive industry makes up around 10% of our GDP, and if we want to keep it, we must systematically modernise it. It is exactly such projects that are crucial for the future of the Czech automotive industry,” said Fiala.

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