Stellantis (STLA) said Monday it is investing over 38 million euros ($41.4 million) in its Verrone plant in Italy to produce components for electric vehicles, with production set to begin in late 2027.

The automaker said the plant will manufacture steel shafts and gears for electric motors used in electric cars on the STLA Small platform, which are currently manufactured in other Stellantis facilities in Europe.

Stellantis said it aims to produce over 400,000 components per year once operations are fully scaled, adding that work has begun on installing 56 machine tools, with six already being put in place.

The Verrone plant, which currently has about 350 employees, produced more than 200,000 gearboxes last year for Stellantis factories in Europe, including in Melfi, Pomigliano, and Atessa, Stellantis said.

STLA shares were 0.7% higher in recent premarket activity.