China’s BYD Co Ltd will set up a new electric vehicle (EV) factory in Mexico, Nikkei reported on Wednesday, citing the company’s Mexico head, as the EV maker aims to establish an export hub to the United States.

BYD, known for its cheaper models and a more varied lineup, recently overtook its biggest rival Tesla Inc (TSLA.O) to become the world’s top EV maker in terms of sales.

According to the Nikkei report, BYD has launched a feasibility study for the Mexican plant and is currently negotiating with officials over terms, including the factory’s location.

While BYD has its sales concentrated in China, opens new tab, it also aims to expand globally and is building new plants overseas in addition to expanding Chinese exports.

Mexico’s massive automaking sector, populated by many of the industry’s top global players, is tightly integrated with the U.S. industry.