Xiaomi Corp. will build an electric vehicle (EV) factory that can produce up to 300,000 cars per year, according to a Reuters report.
As confirmed by economic development agency Beijing E-Town, construction will occur in two stages and production is expected to begin in 2024.
According to Beijing E-Town, the company will also establish its EV headquarters, sales and research divisions in the Beijing Economic and Technological Development Zone.
Xiaomi said it would invest $10 billion (R162 billion) in the EV division over ten years in its initial announcement.
The company has expanded its retail operations in recent months, having opened many stores which it plans to use to help sell cars.
Xiaomi EV, Inc has not released any information regarding the models it will produce or its international expansion plans.
However, the construction of its Beijing factory suggests it plans to become a mainstream EV producer, potentially competing with major players in the industry such as Tesla.