China’s Xiaomi Corp has had compact and convenient electric scooters ready and retailing off the shelf but a recent report from Reuters now suggests that the company could be accelerating its EV push and will be using Great Wall Motor Co Ltd’s factory to build EVs. The tech firm’s stock price jumped as much as 6.71% in early Friday trade after Reuters reported the plan. Great Wall’s Hong Kong stock rose more than 8% and its Shanghai shares gained more than 7%. Xiaomi is in talks to use one of Great Wall’s plants in China to make EVs under its own brand, the report adds.
Great Wall, which has not before offered manufacturing services to other companies, will provide engineering consultancy under the partnership which will be announced as soon as early next week, people close to the development told Reuters. Xiaomi and Great Wall declined to comment.
Alongside smartphones, Xiaomi makes dozens of internet-connected devices including scooters, air purifiers and rice cookers.
The firm plans to launch its first EV around 2023. It will enable its cars to connect with other devices in its product eco-system.
Xiaomi has become the latest tech firm to join the stream for electric mobility. Chinese search engine provider Baidu Inc said in January it plans to make EVs using an auto plant owned by Geely which aims to offer engineering consultancy and contract manufacturing.
Baoding-based Great Wall, China’s biggest pickup truck maker, this year launched a standalone brand for electric and smart vehicles. It is also building an EV factory in China with Germany’s BMW AG.
The automaker sold 1.11 million vehicles last year helped by the popularity of models such as the P-series pickup truck and Ora EVs. It is currently building its first factory in Thailand.
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