Supplier Schaeffler will expand in the US with a new factory making electric axles for light and medium duty vehicles.

It will spend $230m on the green field site in Dover, Ohio.

State incentives will consist of grants and tax credits in return for 650 new jobs.

Factory construction starts mid year with completion planned for the third quarter of 2025.

The first phase is for 130,000 square feet of manufacturing space.

"Our new plant will play a pivotal role in shaping our future in the Americas region," said Schaeffler Americas CEO Marc McGrath.

The new factory will have in house designed and manufactured tools and equipment.

It is close to the supplier's customers, major automotive OEMs, suppliers, rail, highways access and the company's Wooster factory which makes transmission systems.

Schaeffler recently expanded the Wooster plant by 90,000 square feet to produce electric motors and powertrain components.

A new battery cell research and development centre will open in 2025.

The supplier has 15 plants in the Americas region and five R&D locations with US factories in Ohio, South Carolina, Missouri and Connecticut.