Ford Motor Co (F) announced Tuesday plans to explore a joint venture with China's Anhui Zotye Automobile Co to build electric passenger vehicles in China under a new brand.

The move would allow Ford to tap into a boom in demand for electric vehicles in China, which is the world's top auto market and the fastest growing market in the world for new energy vehicles. The country has funneled tens of billions in investment for research and subsidies for electric vehicles to help decrease its high pollution levels.

Zotye is one of China's major zero-emission, all-electric vehicle manufacturers. The company sold more than 16,000 all-electric vehicles through July this year, representing a 56% growth over the same period last year.

More information about the 50-50 joint venture and the indigenous brand the two companies would start will be released at a later date, Ford said, pending a final definitive agreement and regulatory approval.

Ford stock traded up 0.85% premarket Tuesday to $10.66.

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