The current Xiaomi EV factory is a phase 1 project with an annual capacity of 150,000 units, and the second phase is also planned to have an annual capacity of 150,000 units.

Chinese smartphone giant Xiaomi (HKG: 1810, OTCMKTS: XIACY) has acquired a new land parcel in the area where its electric vehicle (EV) factory is located, which will probably be used for its second phase EV factory project.

An affiliate of Beijing-based Xiaomi has acquired the land, located in the Yizhuang development zone in southeastern Beijing, in a bidding for RMB 842 million ($116 million), according to an announcement by the local natural resources authorities.

The deal was concluded on July 25, and the site has a 50-year lease term and a land area of 531,130 square meters, according to the announcement.

The land is located on the east side of Xiaomi EV's existing factory, and the planned use is for smart cars and parts manufacturing.

Xiaomi announced in a Hong Kong Stock Exchange announcement on March 30, 2021, that it planned to set up a wholly-owned subsidiary for its smart EV business. This marked its official announcement of entry into car-making space.

At the end of November 2021, Xiaomi signed a deal with Yizhuang authorities to build a 300,000-unit-a-year car factory there.

The plant would be built in two phases, with annual production capacity of 150,000 vehicles in the first and second phases, respectively, according to an announcement at the time.

On December 28, 2023, Xiaomi unveiled its first EV model, the SU7, an electric sedan that looks like a Porsche, at its first EV technology launch event.

On March 28, the Xiaomi SU7 was officially launched, offering three variants -- standard, Pro, and Max -- with starting prices of RMB 215,900, RMB 245,900, and RMB 299,900, respectively.

Earlier this month, Xiaomi refiled for the SU7, with the manufacturer changing from the former BAIC Off-road Vehicle, the off-road vehicle business division of BAIC Group, to Xiaomi itself, meaning that it has gained independent qualifications to build vehicles.

The Xiaomi SU7 quickly became a huge success after its launch, riding on Xiaomi's popularity in China and the influence of the company's founder, chairman, and CEO Lei Jun.

Customers who currently ordered the Xiaomi SU7 still have to wait about 30 weeks for delivery.

Xiaomi SU7 deliveries exceeded 10,000 units in June and will remain over 10,000 units in July, Xiaomi said earlier this month.

($1 = RMB 7.2521)

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