Xiaomi detailed plans to move into the electric vehicle (EV) sector with an investment of $10 billion planned over the next decade.
In a stock market filing, the company said a wholly owned subsidiary will be established, to be headed by chairman and CEO Lei Jun, with an initial investment of CNY10 billion ($1.5 billion).
Lei argued the move into EVs is a “natural choice” for Xiaomi, citing its work to deliver “innovative technology” including AI and IoT.
He said it has sufficient cash reserves to invest “boldly without hesitation or extra concerns”.
In late February, local media reported Xiaomi was look to expand into the sector using a domestic automaker’s facilities.
The vendor has partnerships involving its voice recognition technology with Chinese car makers FAW Group and Geely, along with German-based giant Mercedes-Benz.
Xiaomi is entering an increasingly congested domestic EV market, with start-ups including NIO and BYTON competing against established automakers.
But it is not alone in looking to the sector: in January, Chinese internet giant Baidu agreed a deal to supply Geely with its intelligent driving technologies as part of an EV manufacturing venture.Subscribe to our daily newsletter Back