China-based JinkoSolar said on Tuesday it would form a joint venture with Saudi Arabia's sovereign wealth fund and a privately owned Saudi renewable firm to build a solar cell and module manufacturing facility.

The company said the facility in Saudi Arabia is expected to have a total investment of about $1 billion and would be funded through a combination of internal and external financing.

Renewable Energy Localization Company, a unit of the Public Investment Fund (PIF) of Saudi Arabia and Vision Industries would hold 40% and 20% equity interests in the JV, respectively.

JinkoSolar's middle east unit would hold the rest of the equity interest, the company said.

The facility is expected to hit an annual production capacity of 10 gigawatt for each of high-efficiency solar cells and solar modules, JinkoSolar said.

Saudi Arabia aims to reach net zero emissions by 2060 and its energy ministry had said in June the country would start annual tenders this year for new renewable energy projects with total capacity of 20 GW, with the aim of reaching between 100 GW and 130 GW by 2030.

(Reporting by Sourasis Bose in Bengaluru; Editing by Krishna Chandra Eluri)