BEIJING, China: Chinese smartphone company Xiaomi has signed a cooperation agreement to build an electric auto assembly plant in Beijing with the Administrative Committee of Beijing Economic-Technological Development Area, also known as E-Town.
The latest tech company to join China's new energy vehicle (NEV) sector, Xiaomi committed to invest $10 billion in a new electric car division over the next 10 years.
According to the statement E-Town posted on WeChat, the new Xiaomi plant, which will be built over two phases, will have the capability to assemble 300,000 electric vehicles annually.
It added that Xiaomi will also build its auto unit's headquarters, sales and research headquarters in E-Town, noting that the plant is expected reach mass production in 2024, a goal earlier announced by the company's CEO, Lei Jun.
In its third-quarter financial report released this week, Xiaomi said its electric vehicle project is progressing smoothly, and has a team of more than 500 staff.
Over the past decade, China has become the world's largest electric car market, and has attracted more overseas and domestic electric vehicle companies.
Other electric vehicle makers, such as local firms Nio and Xpeng, and foreign firms, including Tesla, are expanding their manufacturing in China, where the government has promoted green growth.
In the first 10 months of 2021, electric vehcile sales totalled 2.54 million autos in China, a rise of 180 percent year-on-year, based on data from the China Association of Automobile Manufacturers, which predicts the year's total electric vehicle sales could reach 3 million units.
E-Town, located in Daxing District, south Beijing, is a major base for technologically advanced industries that serve the local real economy, including automakers Beijing Benz and Beijing Electric Vehicle.