Chinese tech giant Xiaomi, best known for its popular smartphones, has officially registered a company that will produce electric vehicles. According to the founders, the unit has already entered a «phase of significant development.»

The company was named Xiaomi EV, Inc., with a registered capital of $1.55 billion. In March, the «parent» company already made a statement about its intention to invest $10 billion in the production of electric vehicles over the next ten years.

According to representatives of Xiaomi, 300 employees already work in the branch, and the new division is headed by the direct founder and head of Xiaomi, Lei Jun.

According to Xiaomi, over the past five months, the new division has already conducted extensive user research and established contacts with partners in the industry. However, the new business is still not ready to introduce any electric vehicle or its prototype.

Earlier this month, Xiaomi announced a $77.37 million purchase of Deepmotion, a company developing autonomous driving systems «to increase the technological competitiveness» of the electric vehicle business.

Xiaomi, in addition to smartphones known for all kinds of IoT devices, will have to work hard to carve out a niche in the Chinese electric vehicle market. Local giants such as Nio and Xpeng are already here, as well as world-famous companies such as Tesla and China’s BYD, which is backed by renowned financial tycoon Warren Buffett.