The Chinese IT giant has begun constructing its second EV manufacturing complex in Beijing, Nikkei reports. The new factory will reside not far from the existing one and will handle the excess demand for the company’s firstborn, the SU7.
The construction area was officially cleared for the works on July 25, 2024. Preparations began on the next day. Reports are saying that the company paid the rough equivalent of U.S. $116 million for 530,000 square meters of land.
Once complete, the new industrial complex will comprise three manufacturing facilities. They are expected to be commissioned in 2025, although Xiaomi hasn’t released any official dates. With this new complex running at full capacity, it will help the company churn out 300,000 electric vehicles annually.
Xiaomi hasn’t explained why it needed another factory yet, but everything points to the company struggling with the overwhelming demand for its first EV, the SU7. After receiving tens of thousands of preorders within a few days, the company switched its only assembly line to two-shift schedule in June. Even so, with over 100,000 buyers currently in the waiting line, the backorder reaches 37 weeks for some of them. Launching a second factory should help with the future demand.
