Xiaomi to invest RMB 1.7 billion in EV battery maker Sunwoda Mobility

Xiaomi plans to invest RMB 1.7 billion in Sunwoda Mobility, acquiring a 5.34% stake in the electric vehicle battery maker through its wholly owned investment subsidiary, according to an October 29 filing by parent company Sunwoda Electronic. The transaction will involve subscribing for newly issued capital. Following the investment and a planned board reshuffle, Sunwoda Electronic will hold no more than half of Sunwoda Mobility’s board seats. It will consequently cease to control the battery business and stop consolidating its financial results. The investment deepens Xiaomi’s relationship with a battery supplier as it expands its automotive business. Sunwoda Mobility was already named a strategic partner in Xiaomi’s Dragon Armor battery program, which the automaker introduced in September. [Sunwoda Electronic filing, in Chinese]