Chinese electric vehicle (EV) manufacturer BYD is set to announce a $1 billion investment in Türkiye, a report by Bloomberg said on Friday.

The world's largest EV maker's investment is set to be announced during a ceremony scheduled for Monday, the report said, citing anonymous top officials.

Industry and Technology Minister Mehmet Fatih Kacır had in May indicated that advanced discussions were ongoing with BYD and Chery regarding investments in Türkiye.

Officials told Bloomberg that negotiations with BYD have concluded, with the company planning to build its second factory in Türkiye following its announcement to establish its first European plant in Hungary.

According to officials, the factory will be constructed in Manisa, one of Türkiye's prominent cities in the automotive sector. The signing ceremony is said to be attended by President Recep Tayyip Erdoğan.

If confirmed, the investment would come after Türkiye announced last month a 40% additional tariff on vehicle imports from China to halt a possible deterioration of its current account balance and protect domestic automakers.

The additional tariff is set at a minimum of $7,000 per vehicle. The decision will be effective from July 7.

In 2023, Türkiye imposed additional tariffs on electric vehicle imports from China and brought some regulations regarding EV maintenance and services.

China has been facing increasing pressures worldwide over its growing exports of electric vehicles, which many countries claim are being heavily subsidized by Beijing.

The European Union on Thursday imposed extra provisional duties of up to 38% on Chinese EV imports because of Beijing's "unfair" support, a move that risks escalating tensions with Beijing. This is in addition to current import duties of 10%.

China has urged both the EU and Türkiye to cancel their tariffs. Already stung by U.S. tariffs, it has said it does not want to be embroiled in another tariff war, but would take all steps to protect its firms.