Chinese automaker BAIC, battery giant CATL, and technology company Xiaomi have unveiled plans for a collaborative effort to establish a battery cell factory in Beijing. The construction of the factory is set to commence this year, with the joint venture kicking off with an initial capital injection of 1 billion yuan ($138 million).
The partnership, known as Beijing Era New Energy Technology, will see CATL holding a majority stake of 51%, with BAIC and Xiaomi Auto holding 39% and 5%, respectively. Despite the announcement, specific details regarding the factory’s production capacity, the type of cells to be manufactured, and the construction and production timeline remain undisclosed.
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Reports from 2022 had hinted at a potential collaboration between Xiaomi and BAIC, albeit focused on electric vehicle production rather than battery manufacturing.
BAIC’s recent partnerships extend beyond the realm of batteries, as the company announced a joint EV brand with Hyundai at the end of January, following earlier considerations for joint production initiatives. Additionally, BAIC has secured a production agreement with Mercedes for vehicles targeting the Chinese market.
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This venture marks CATL’s second battery factory project in Beijing, with plans for another plant announced earlier this year. Construction on the new facility is slated to commence before the end of the year. Notably, Xiaomi has already confirmed plans to utilize batteries from this new factory in its recently unveiled Xiaomi SU7, originally slated for release in 2024 but with a revised timetable.
