CATL, BAIC and Xiaomi will establish a joint venture company, Beijing Era New Energy Technology. The company will operate a new battery cell factory in Beijing. The joint venture will start with a capital investment of 1 billion yuan (approximately $138 million). CATL will hold a majority stake of 51%, followed by BAIC with 39% and Xiaomi Auto with 5%.
BAIC announced the plans for the joint venture on March 11, 2024. Details on the factory’s production capacity, the specific types of battery cells to be produced, and the construction and production schedule have not yet been disclosed.
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The venture marks Xiaomi’s continued interest in the EV sector, following earlier reports in 2022 of a potential partnership with BAIC to produce electric cars. BAIC, meanwhile, has been active in collaborations, including a recent announcement of a jointly operated EV brand with Hyundai and a production deal with Mercedes for the Chinese market.
BAIC has made significant investments in the new energy vehicle market in recent years. However, the company is currently experiencing losses. Competition is becoming increasingly fierce in the new energy vehicle market, according to the company. In order to continuously improve its competitiveness, the company aims to actively explore the market, enhance its brand image and improve operational efficiency.
This is not the first battery factory to be built by CATL in Beijing, as the construction of another plant was announced in January this year, with Xiaomi expected to use some of the batteries for its Xiaomi SU7 vehicle. The initiative reflects Xiaomi’s commitment to advancing electric mobility and developing electric vehicle infrastructure, particularly in China, despite the highly competitive market conditions.
The partnership is an example of the strategic moves by major companies to diversify their involvement in the electric vehicle and energy sectors in order to strengthen their position in the rapidly evolving market.
Source: Electrive
