(Yicai Global) March 30 -- Xiaomi, China’s biggest smartphone maker, has ended months of speculation by confirming that it plans to invest USD10 billion in a new smart electric vehicle business over the next 10 years.

Xiaomi will set up a wholly owned subsidiary to run the business and invest CNY10 billion (USD1.52 billion) in the project’s first phase, the Beijing-based company said in a filing to the Hong Kong stock exchange after the market closed today.

Lei Jun, founder and chief executive of the consumer electronics giant, will also lead the new venture. Xiaomi did not disclose any further information.

The long-anticipated announcement means another of China’s big internet firms has joined the likes of e-commerce behemoth Alibaba Group Holding and search engine titan Baidu in entering the country’s fast-growing electric vehicle market. 

Xiaomi’s shares [HKG:1810] closed up 2.2 percent in Hong Kong today at HKD25.60 (USD3.29) each.

Editor: Tom Litting