TOKYO (Reuters) - Toyota Motor ( TM ) will establish a wholly owned company in Shanghai to develop and produce electric vehicles and batteries for the Lexus brand, with production set to start in 2027, the world's top-selling automaker said on Wednesday.

In a statement, Toyota ( TM ) said the unit would develop a new Lexus EV and that initial production capacity would be about 100,000 units a year. About 1,000 new jobs are planned in the start-up phase, it said.

Toyota ( TM ) also said it would partner with the Shanghai municipal government for carbon-neutral initiatives, aiming to "contribute to the Chinese government's goal of achieving carbon neutrality by 2060".

(Reporting by Chang-Ran Kim; Editing by Muralikumar Anantharaman)