Chinese smartphone company Xiaomi is building a manufacturing plant in Beijing for its electric vehicle unit. The plant will produce up to 300,000 vehicles for the tech giant.
As per Beijing E-Town, the government-backed economic development agency, the plant’s construction will be in two phases. In addition, the company will build its EV unit’s headquarters along with sales and research offices.
Although the exact location is unknown, authorities noted that the plant and associated offices would be in the Beijing Economic and Technological Development Zone, reports Reuters.
Beijing E-Town also noted that the plant is expecting to reach mass production in 2024.
This lines up with previous announcements by Xiaomi’s Chief Executive Lei Jun in October.
The planned investment has been in the works since early 2021.
In March, Xiaomi announced it was investing $10 billion in a new electric car division over the next ten years. The company completed the business registration of the new unit in late August.
In addition to expanding to electric vehicles, Xiaomi is also expanding its real estate footprint. The company is opening thousands of stores across China to spur domestic growth for its smartphone business.
However, these stores will then be used as a sales channel for its EV business once it is up and running.