Chinese smartphone company Xiaomi will start producing electric vehicles (EVs) in a facility capable of turning out 300,000 units per year.

Also, Xiaomi's first EV model is bigger than the Tesla Model 3 and Nio ET5, and will be offered in single and dual motor versions with the batteries to be supplied by BYD and CATL.

A regulatory filing with Chinese authorities showed the battery electric vehicle (BEV) model is produced by BAIC Off-road Vehicle, the off-road vehicle business division of BAIC Group, not Xiaomi. However, local media outlet Cailian reported that Xiaomi only borrowed BAIC's car production qualification, while the actual production of the car model taking place at Xiaomi’s own factory.

Xiaomi officially announced its entry into the car manufacturing on March 30, 2021, committing to invest $1.38 billion in the first phase for its automotive business venture. The company expects to invest $10 billion over the next 10 years for its foray into car manufacturing.

In November 2021, Xiaomi signed a contract with the Beijing authorities to build a headquarters base for its automotive business as well as a sales headquarters and research and development in Yizhuang.

Meanwhile, Xiaomi’s plant would be built in two phases, with annual production capacity of 150,000 units in the first and second phases. Xiaomi added that its first car is expected to roll off the production line and will be massed produced in 2024, and the ultimate goal is to produce 300,000 vehicles annually.