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At a recent technology demonstration and launch event, Xpeng unveiled the L03 to a global audience.
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VW Group is facing a serious challenge from Chinese OEMs in China and in Europe.
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The automaker aims to strengthen its manufacturing base in Japan.
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Preparations for industrialisation and future series production of the hydrogen fuel cell system are also underway at the engine facility in Steyr, Austria.
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It marks the first model under the company's futuREady strategy for expansion outside Europe.
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The segment has been lifted by strong demand for BEVs and problems at Hyundai.
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The new site will act as the company's hub for serving customers throughout the US.
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The move comes weeks after the Vietnamese carmaker shelved plans to build certain global models in the country.
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The approval allows the three companies to begin preparatory work ahead of deployment before a planned commercial robotaxi launch in the Community of Madrid.
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The ESS system for EV charging stations will use end-of-life Hyundai-Kia EV batteries.
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