Toyota Motor Corp. and Mazda Motor Corp. have established a joint venture to establish a production plant costing $1.6 billion to produce vehicles in the U.S., the companies have announced.

While the location of the plant hasn't been determined, Mississippi could be considered a front-runner, because Toyota builts its Corolla in Blue Springs, reports Bloomberg. Mazda doesn't currently have a U.S. plant.

The investment for the new plant would come from equal funding contributions from the two automakers. The plant is expected to produce about 300,000 vehicles per year and create an estimated 4,000 jobs.

Toyota will focus the plant's production on building Corollas, while Mazda plans to produce crossover models for the North American market.

Toyota and Mazda have set a goal to begin operations in 2021, pending government approval and authorization.

The effort is part of a larger business alliance between the two companies, which includes joint development of electric vehicle and safety technology, as well as expanding complementary product offerings between both manufacturers.