Xiaomi Automotive recently signed a contract with a committee from the Beijing Economic-Technological Development Area to establish its entire automotive business in the suburb of Yizhuang. With a goal to put its first EV on roads in 2024, Xiaomi will establish its headquarters, R&D, and manufacturing on the site that will be constructed in two phases.
Xiaomi Automotive is a relatively new company that was formed out of the much larger consumer electronics company, Xiaomi Communications Co. – the third largest smartphone producer in the world.
Last March, we shared the news that Xiaomi Communications Co. was reportedly looking to enter the growing EV market with its own brand of electric cars. At the time, there were rumors that fellow Chinese company Great Wall Motors would offer consulting for the engineering process to speed up Xiaomi’s EV project.
This past September, the mega-manufacturer confirmed its new entry into EVs by officially establishing industrial and commercial registration in China as Xiaomi Automotive Co. Ltd. With a team of 300 employees in place at the time, Xiaomi Group founder, chairman, and CEO Lei Jun announced Xiaomi Automobile had successfully registered with capital of 10 billion yuan (~$1.55 billion).
At the time of its registration announcement, Xiaomi was reportedly still looking for an EV production partner. The search included 85 industry visits, in addition to extensive meetings with more than 200 automotive industry veterans from companies like BYD, Great Wall Motor, Wuling Motors, and SAIC.
Now, it appears Xiaomi is going to tackle EV production on its own, with the help of the Beijing Economic and Technological Development Zone.
New Xiaomi EV factory will be built in two phases
As reported by The South China Morning Post, Xiaomi’s contract for new facilities will be constructed in Yizhuang, a suburb of China’s capital within the Beijing Economic-Technological Development Area.
The same economic development zone is home to the facilities of several other major tech companies like Baidu, and the country’s top chip foundry Semiconductor International Manufacturing Corporation (SMIC).
The Chinese government announced the contract signing through its WeChat account, and praised Xiaomi for epitomizing “outstanding Chinese technology” and savvy manufacturing practices.
As part of the agreement, Xiaomi will erect its facilities in two phases, each delivering production outputs of 150,000 EVs per year. In addition to production, the Beijing footprint will also include Xiaomi Automotive’s headquarters, sales center, and R&D facilities.
Officials from the economic zone said it will provide full support for Xiaomi Automotive, and is already pushing for an early start to construction to get EV production going sooner.
Xiaomi execs stated the company already has 500 employees in place for its first EV project and remains on track to reach mass production at the newly announced facility sometime in 2024.
FTC: We use income earning auto affiliate links. More.
Comments