Xiaomi Corp (1810. HK), the Chinese smartphone giant, will develop a facility in Beijing capable of producing 300,000 vehicles per year for its electric vehicle subsidiary, officials in the city said on Saturday.

The facility will be erected in two stages, and Xiaomi will also establish its vehicle unit's headquarters, sales, and research offices in the Beijing Economic and Technological Development Zone, according to the government-backed economic development agency Beijing E-official Town's WeChat account.

Beijing E-Town claimed the factory will be ready for mass production in 2024, a goal declared by Xiaomi CEO Lei Jun in October.

Xiaomi said in March that it will invest $10 billion in a new electric car segment over a 10-year period. In late August, the corporation finalized the business registration of its EV segment.

The corporation has been establishing hundreds of stores to boost domestic sales growth for its smartphone business, but it eventually hopes to utilize these stores as a route for selling electric vehicles.