Xiaomi Corporation is to make NEVs through a wholly-owned EV subsidiary, the company announced Tuesday. CEO LEI Jun will head up the new entity. 

Xiaomi will initially invest 10 billion yuan (US$ 1.5 billion) in the new venture, rising to as much as U$10 billion (66 billion yuan) over the next ten years.

On March 26, Reuters reported Xiaomi was teaming up with automaker GWM Group and an agreement was set to be signed this week. Xiaomi declined to comment.

During a March 24 teleconference on Xiaomi’s annual report, no mention was made of NEVs.