XIAOMI collaborates with CATL to establish battery company: Layout of the car industry chain

Recently, Beijing ShiDai Power Battery Co., Ltd., jointly held by XIAOMI, CATL, and Beijing Jingneng, was established, with Meng Xiangfeng as its legal representative. The registered capital is 1 billion RMB, and the business scope is battery manufacturing.

It is reported that the core plan of this joint venture is to build a cell factory to provide a stable supply of batteries and cells for XIAOMI cars. So, the battery manufacturer CATL holds 51% of the largest share of the company, Beijing BlueCore holds 39%, Jingneng Technology, and XIAOMI each hold 5% of the shares.

The battery is the core component of electric vehicles, and its performance and cost will have a huge impact on vehicle sales and profits. XIAOMI was originally a mobile phone manufacturer, producing cars is a cross-border production, so direct cooperation with the battery industry giant CATL will bring great help to its production and manufacturing.

XIAOMI and CATL have cooperated earlier, so the establishment of a joint venture is not accidental. In December 2023, XIAOMI stated that the SU7 is equipped with XIAOMI-CATL cells, with a battery capacity of 101kWh. SU7 is the first car of XIAOMI to enter the automotive field. Since April 3, it has started delivery. On the 43rd day, on May 15, it completed the delivery of 10,000 cars.