German automobile giant Volkswagen is in final talks to acquire 50 percent of Anhui Jianghuai Automobile Group Holding for at least 3.5 billion yuan (492.3 million U.S. dollars).

Anhui Jianghuai is the parent of JAC Volkswagen, a 50:50 JV that focuses on the production of new energy vehicle. The deal will be the biggest investment VW makes in China's EV sector. 

The automaker is also set to become the largest shareholder EV battery maker Guoxuan High-tech Co Ltd.

The two deals could be announced as early as Friday. (Reuters)