Xiaomi plans to invest 1.7 billion yuan in Sunwoda Mobility, becoming a shareholder with a 5.34% stake in this electric vehicle battery manufacturer. This deal will be executed through a wholly-owned investment subsidiary of Xiaomi, according to a report filed by the parent company Sunwoda Electronic on October 29.
The investment involves subscribing to newly issued capital. After the completion of the investment round and the planned change in the board of directors' composition, Sunwoda Electronic will not own more than half of the seats on the Sunwoda Mobility board of directors. This will lead to the company relinquishing control over its battery business and ceasing to consolidate its financial results.
This investment strengthens Xiaomi's partnership with the battery supplier as part of the expansion of its automotive division. Previously, Sunwoda Mobility was recognized as a strategic partner in the Dragon Armor battery program, which the automaker presented in September.