(Reuters) -China's Leapmotor will start producing small electric cars at a Stellantis plant in Poland as part of a joint venture between the two carmakers, two people close to the matter told Reuters on Friday.

Production of Leapmotor's T03 small car would start as early as the second quarter of this year using the so-called semi-knocked down (SKD) technique, which consists of turning partially assembled kits into finished vehicles, one of the people said.

Production will start at Stellantis Polish facility in Tychy, the second person said.

The two companies were not immediately available for comment.

Stellantis said last year it was buying a 21% stake in Leapmotor in a $1.6 billion deal that would give it a fresh shot at China, the world's biggest car market by sales.

As part of the deal the two carmakers also announced a joint venture, giving Stellantis exclusive rights to build, export and sell Leapmotor products outside China, a first for a legacy western automaker.

Chinese regulator earlier this month gave approval to the Netherlands-based joint venture, led by Stellantis with a 51% stake.

Media reports had said earlier this year Stellantis was considering its Mirafiori complex in Turin, Italy, as a base for Leapmotor's European production.