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Electromobility Xiaomi: New Subsidiary Produces Batteries And Electric Motors

From Stefanie Eckardt | Translated by AI 2 min Reading Time

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The Chinese company Xiaomi, which not only manufactures consumer electronics but also builds electric vehicles, has founded a subsidiary that focuses on the production of batteries and electric motors. Beijing Xiaomi Jingxu Technology was officially founded at the end of April.

In order to make its e-car production more independent, Xiaomi will manufacture batteries and electric motors itself in future. The subsidiary Beijing Xiaomi Jingxu Technology has been founded for this purpose.(Image: Xiaomi)
In order to make its e-car production more independent, Xiaomi will manufacture batteries and electric motors itself in future. The subsidiary Beijing Xiaomi Jingxu Technology has been founded for this purpose.
(Image: Xiaomi)

Xiaomi Auto has so far pursued a two-pronged strategy in electromobility. On the one hand, the company has relied on its own research and development. On the other hand, it has worked closely with suppliers. For example, the company developed the CTP3.0 battery pack together with battery manufacturer CATL and collaborated with BYD Fudi on the lithium iron phosphate battery solution. In addition, the company independently developed the HyperEngine V8s/V6s super motors with a maximum speed of 27,200 rpm.

By founding its own subsidiary, Xiaomi now wants to expand its activities with its own production facilities

More Independent in the Supply Chain

Beijing Xiaomi Jingxu Technology is indirectly wholly owned by Xiaomi Intelligent Technology and is starting out with a share capital of around 1.39 million US dollars. The newly founded company is primarily involved in the production of central e-car components such as batteries, electric motors and electrical control elements. This allows Xiaomi to act more independently in the supply chain. No wonder, as the drive battery alone accounts for around 40 to 50 percent of the total vehicle costs, while the drive motor and the electronic control system together account for another 10 to 15 percent. Following the establishment of the new company, the independent production of core components can effectively hedge against fluctuations in raw material prices and build a more solid protective wall for the supply chain.

High Demand, But Production Capacities Are A Challenge

The new subsidiary plays a strategic role in view of Xiaomi's delivery targets. Xiaomi Auto aims to sell 550,000 vehicles this year. At the moment, however, production capacity and delivery are a major challenge for Xiaomi Auto in view of the high demand. As of May 6, about 30,000 units of the new SU7 have been delivered, which means that more than 50,000 orders are waiting in the queue for production.

On a positive note, however, Xiaomi was able to announce in March that two years after the market launch of the Xiaomi SU7, it had recorded an EBIT profit of the equivalent of over 125 million US dollars for its electric car division. (se)

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