Japan's Toyota said Wednesday it will build an electric vehicle plant in Shanghai for its luxury Lexus brand as it raised its annual net profit forecast to almost $30 billion.

The $14 billion North Carolina facility will manufacture batteries for electric vehicles, hybrids and plug-in hybrids.

Japanese carmaker Toyota on Wednesday that it will build a wholly-owned subsidiary in Shanghai to develop and produce Lexus-branded electric vehicles and batteries. The subsidiary, which will be located in Shanghai's Jinshan district, will start production in 2027, said Toyota in a statement.