Japanese-Italian supplier Marelli will start production of electric drivetrains next year in a former Ford plant in Germany.
Potential customers include Porsche for its Taycan electric sedan and Audi for its e-tron EV, German press reports said.
Marelli's factory will be in Cologne, where Ford plans to build a family of mass-market EVs based on Volkswagen Group's MEB platform that underpins the newly launched VW ID3 Golf-sized electric hatchback.
Marelli did not comment on potential customers, nor on the factory's site, except to confirm that it is a former Ford facility.
The Cologne newspaper, the Koelner Stadt-Anzeige, said Marelli is moving into premises on Ford's production site in Niehl, north of the city.
Marelli said in a statement that the start of production is targeted for the first half of 2021. Initially the plant will employ about 160 employees. Marelli plans to hire up to 60 additional employees through 2021.
The 193,750-square-foot factory has potential for future expansion, Marelli said.
"With the new production facility, we are expanding our manufacturing footprint and capacities for this important growth market," Joachim Fetzer, CEO of Marelli's electric powertrain business, said in the statement.
Cologne was picked as the location for the plant because it is in the heart of Europe, has a skilled automotive work force and the region is developing into a center for e-mobility, Fetzer said.
Electric drivetrains are a core element of Marelli's growth strategy, he said.
Marelli was one of the early suppliers of Formula One motor racing's hybrid technology called KERS (Kinetic Energy Recovery System). It is also an EV drivetrain supplier for Formula E racing.
Japan's Calsonic Kansei bought Magneti Marelli, from Fiat Chrysler Automobiles in May 2019 for 5.8 billion euros ($6.5 billion). The merged company was renamed Marelli.
Marelli ranks No. 14 on the Automotive News list of the top 100 global suppliers with worldwide sales to automakers of 14.9 billion in fiscal 2019.