Chinese smartphone giant Xiaomi will build a plant in Beijing that can produce 300,000 vehicles annually for its electric vehicle (EV) unit, authorities said on Saturday.

The plant will be constructed in two phases, and Xiaomi will also build its auto unit's headquarters, sales and research offices in the Beijing Economic and Technological Development Zone, the government-backed economic development agency Beijing E-Town said on its official WeChat account.

Beijing E-Town said it anticipated the plant reaching mass production in 2024, a goal announced by Xiaomi's Chief Executive Lei Jun in October.

In March, Xiaomi said it would invest $10 billion in a new electric car division over 10 years. The company completed the business registration of its EV unit in late August.

The company has been opening thousands of new stores to spur domestic sales growth for its smartphone business but eventually intends to use these shops as part of its plans to sell electric vehicles.