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Xiaomi will invest US $10 billion to set up an electric vehicle subsidiary in the next 10 years

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 Xiaomi's mega launch proved so long that it had to be divided into two parts - yesterday's part 1 brought multiple Mi 11, and we expect today's part 2 to bring the company's first foldable product. Xiaomi may be more than that. Xiaomi has just announced that it will enter the electric vehicle business.



It announced that it would invest about $10 billion over the next decade, with an initial investment of $1.5 billion. Xiaomi will set up a wholly-owned subsidiary to operate its electric vehicle business. Lei Jun, Xiaomi's chief executive, will also be the chief executive of the subsidiary.


The electric car market seems to be the next battleground for Smartphone giants. Apple is developing a car to try to find a partner who can bring car parts, while Apple itself focuses on batteries, autonomous driving technology and other hardware / software features.


Moreover, Huawei, Xiaomi's domestic rival, is also reported to want to make electric cars. Unconfirmed sources say the company has contacted Chang'an Automobile, a state-owned car maker, blue park new energy technology and other potential partners.


Samsung SDI already makes batteries for electric cars, another branch of Harman, an infotainment maker the South Korean giant acquired a few years ago. LG energy solutions, which was spun off from LG Chemical last year, also makes batteries for electric vehicles.


Don't miss Xiaomi's second day live broadcast, its first foldable mobile phone, and more details on how the company plans to transform its smartphone technology into the electric car market. Xiaomi has made popular electric scooters and bicycles, but it's a leap from those cars to cars.

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