Xiaomi is nearing completion of Phase 2 of its electric vehicle (EV) factory in Beijing, as the company prepares to launch its second model, the Xiaomi YU7. The facility’s expansion is expected to be finalized by mid-June, according to a report from local media outlet Time Weekly.
The second phase of the EV plant, located in the Yizhuang area of Beijing, began construction last year and includes additional production halls and office infrastructure. The project marks the latest development in Xiaomi’s automotive ambitions, which began with an agreement signed in November 2021 to construct a 300,000-unit-per-year facility in two phases, each with a planned capacity of 150,000 vehicles annually.
Xiaomi completed the first phase of the plant in 2023, and began delivering its first electric model, the SU7 sedan, in April 2024. To meet growing demand, the company shifted the facility to double-shift operations by June 2024, as detailed in its second-quarter earnings report last year.
The imminent launch of the Xiaomi YU7 on May 22 is expected to further strain production capacity, as the brand works to scale operations. In March, Xiaomi raised its 2025 vehicle delivery target to 350,000 units, exceeding the combined annual capacity of both existing plant phases. In response, construction has already commenced on a third phase of the factory, situated directly east of the current expansion site.
In March, Beijing land authorities issued a proposal for development of an adjacent 52-hectare plot, widely believed to be designated for Phase 3 of the EV plant. Separately, Bloomberg reported that Xiaomi was extending its existing facility onto this land, citing sources familiar with the matter.