Chinese battery and electric carmaker Kandi Technologies Group said on Thursday it is actively exploring setting up an electric and off-road vehicle manufacturing plant in North America.

The U.S.-listed company said it is in the early stages of discussions with various partners, including local government agencies from the U.S.-Mexico border, but warned negotiations would not guarantee that a plant will be built.

Many Chinese electric vehicle makers are looking at the United States for expansion as demand for EVs picks up.

China’s Li Auto Inc., backed by food delivery giant Meituan Dianping, recently made a Nasdaq debut. Xpeng, backed by Alibaba and Xiaomi, filed for a U.S. listing in July.

Kandi said it plans to forge a position in North America’s electric vehicle market by offering lower-cost vehicles after eliminating shipping costs and tariffs.

The company recently began accepting pre-orders for the K23 and K27 EV models in the United States, priced at $9,999 and $19,999, with the federal tax credit.

The vehicles will be available for delivery in the fourth quarter.

In contrast, Tesla Inc.’s best-selling Model 3 sedan is priced at around $37,990.