Xiaomi - a Chinese technology giant - has signed an agreement with Beijing authorities to build an electric vehicle factory, with the capacity to produce up to 300,000 units per year.

The factory will be built in two phases, with the first vehicles expected to hit the market in 2024. Xiaomi will also build the headquarters of its electric vehicle unit, sales and research offices in the Beijing Economic and Technological Development Zone.

Xiaomi, known for its cell phones and other devices, announced last March that it is entering the electrical sector with an investment of about ten billion dollars over the next ten years.

In September, the company formalized the creation of its new subsidiary dedicated to this type of vehicle.

According to Xiaomi, more than 500 employees are already working in the new subsidiary, and they are already producing small electric vehicles, and electric motorcycles, in partnership with Super Soco of china.

The company has been opening thousands of stores to stimulate domestic sales growth of its smartphone business, but it intends to use these stores as a channel for its plans to sell electric vehicles.