According to the government, Xiaomi will open a car plant in Beijing that will produce 300,000 vehicles per year

Authorities in Beijing announced on Saturday that Chinese smartphone giant Xiaomi will build a plant in the capital that will be capable of producing 300,000 electric vehicles per year for its electric vehicle unit.

According to the government-backed economic development agency Beijing E-official Town's WeChat account, the plant will be built in two phases, and Xiaomi will also build its auto unit's headquarters, sales, and research offices in the Beijing Economic and Technological Development Zone.

Xiaomi's Chief Executive Lei Jun announced in October that the plant would reach mass production in 2024. Beijing E-Town said it expected the plant to reach mass production in 2024.

Xiaomi announced in March that it would invest $10 billion over ten years in a new electric car division. In late August, the company completed the business registration of its EV unit.

Thousands of stores have been opened to boost domestic sales growth for the company's smartphone business, but the company eventually plans to use these stores as a channel for its plans to sell electric vehicles.