China smartphone giant Xiomi to invest $10 bil. to enter EV market

©Kyodo News

Chinese smartphone giant Xiaomi Corp. said Tuesday it will invest $10 billion over the next 10 years to enter the electric vehicle market, likely becoming a major rival to U.S. tech giant Apple Inc.

Xiaomi is expected to establish a new company to produce a "smart EV" equipped with state-of-the-art automated cruising capabilities that are powered by internet and artificial intelligence technologies.

In January, China's leading internet search provider Baidu Inc. also announced it would tap into the EV market.

China has been eager to phase out new sales of gas-powered cars and bring eco-friendly ones into the mainstream by 2035, while President Xi Jinping has pledged to make the country carbon neutral by 2060.

Apple, meanwhile, has been reportedly aiming to start production on its own EV as early as 2024.