Xiaomi has announced plans to launch an electric vehicle business and invest $10 billion over the next 10 years.

The company will set up a wholly-owned subsidiary and the initial phase of investment will total 10 billion yuan ($1.52 billion), it said Tuesday.

Xiaomi founder and CEO Lei Jun said the company decided to make the foray into the electric vehicles market as it believes smart electric vehicles are the “broadest race track in the next decade”.

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“It is an inseparable and crucial part that forms the smart ecosystem; it is an inevitable choice to expand the integrated ecosystem of AIoT smart living; it is also the only path for us to fulfil the vision of the company and to bring a better life to everyone through technology,” he said in an open letter.

“The decision was made after numerous rounds of deliberation among all our partners, and this will be the final major entrepreneurial project of my life. I am willing to put all my personal reputation on the line and fight for the future of our smart electric vehicle.”

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