ISTANBUL, July 8 (Reuters) - Chinese electric vehicle

manufacturer BYD Co Ltd agreed with the Turkish

government to build a $1-billion production plant in Turkey with

an annual capacity of 150,000 vehicles, state-run Anadolu news

agency said on Monday.

Anadolu published pictures of Turkish President Tayyip

Erdogan meeting BYD Chief Executive Wang Chuanfu at a

deal-signing ceremony for the plant, which it said would include

a mobility and R&D center and employ 5,000 people.

Last week the European Union raised tariffs on Chinese EVs

to help protect its industry. The deal could ease BYD's access

to the market given Turkey's customs union with the EU.

The Chinese firm reached the deal with Turkey's Ministry

of Industry and Technology.

China's state-backed Securities Times

earlier reported

- without mentioning Turkey - that BYD agreed to build a

factory for core parts of new energy vehicles that would

backstop capacity of its factory in the southern city of

Shenzhen.

Last week, a deputy chairman of Turkey's ruling AK Party

told Reuters that Chinese carmaker Guangzhou Automobile Group

was

in talks

with Turkish EV manufacturer TOGG over a possible joint

production venture.

GAC's top management plans to visit TOGG in Turkey this

month, the AK Party's Zafer Sirakaya said.