Smartphone Maker Xiaomi Confirms EV Venture, Plans $10B Investment Over 10 Years

After remaining non-committal, Xiaomi Corporation XIACF finally made an official announcement concerning its intention to join the crowded electric vehicle market. 

What Happened: Chinese smartphone maker Xiaomi disclosed in a filing with the Hong Kong stock exchange that its board has decided to launch a smart EV business.

The company expects to inject 10 billion yuan ($1.52 billion) into the business and increase the investment to a total of $10 billion over the next 10 years. Xiaomi's CEO Lei Jun will also serve as the CEO of the smart EV business.

Related Link: The Smartphone Company That's Fast-Tracking Its EV Push

Why It's Important: The dire need to phase away internal combustion engine vehicles and replace them with green energy vehicles has made EVs an exciting opportunity that presents a huge market potential.

Apart from pure play EV companies, most legacy automakers have also plunged headlong into the sector. In recent times, several players unrelated to the industry have expressed interest in making EVs.

For tech companies, an EV foray could be seen as a logical extension, as most alternate energy vehicles have tech-intensive features. It is believed these companies will most likely helm the technology front and outsource manufacturing, as is the case with their flagship products.

Among the other companies that are nurturing EV ambitions are Apple Inc. AAPL, search engine Baidu, Inc. BIDU, Hon Hai Precision Industry Co., Ltd. HNHPF and even Huawei, which been at the center of the U.S.-China standoff.

Related Link: Apple Supplier Foxconn In Talks To Make Batteries, EV Parts With Vietnam's VinFast: Report