Chinese electric vehicle and battery maker Build Your Dreams, or BYD Auto Co., has signed an accord with local manufacturers to develop electric public-transportation vehicles and lithium batteries in the South American country, Argentina's production ministry said in a statement Tuesday.

"Argentina could become a regional platform for the company to export to Mercosur, Latin America and the world," the ministry said.

Mercosur is the South American trading bloc, whose founding members are Brazil, Argentina, Paraguay and Uruguay.