BEIJING (Reuters) - Chinese electric vehicle manufacturer BYD has signed an agreement to build a factory for core parts of new energy vehicles with total investment of 6.5 billion yuan ($894.2 million), state-backed Securities Times said on Monday.

The project will further improve manufacturing capacity of BYD's factory in the southern city of Shenzhen, the newspaper cited local television as saying.

($1 = 7.2695 Chinese yuan renminbi)