Xiaomi has already been nicknamed the "Apple of China."

The company, known for its smartphones such as the new Xiaomi Mi 11, announced its plans today at a new product launch event in China for 2021, tweeting that it will invest $10 billion in the project over the next decade.

In its shareholder filing, Xiaomi said it will establish a separate division for its new electric vehicles, led by co-founder Lei Jun, adding that it wants to provide "high-quality smart electric vehicles so that everyone around the world can enjoy smart living anytime, anywhere."

This news has been rumored for some time. Last week, Chinese website 36 Krypton reported that the project is already underway and that Ray has held discussions with Nio, a Chinese luxury EV manufacturer, about joint development of the car.

The project would pit Xiaomi against tech giants Apple and Huawei, which each have their own electric car plans, and would put the company in an increasingly competitive field where established automakers are battling the likes of Tesla.

Unlike Apple, Xiaomi already has a history in the automotive world. Last year, it teamed up with Lamborghini to create the Ninebot GoKart Pro, a supercar-inspired GoKart with a 432Wh battery and a top speed of 25 mph. And in 2019, they produced the Redmi Bestune T77, an SUV with a 1.2-liter turbocharged engine, 6-speed manual gearbox, and 143 hp.

Apple's Apple Car plans appear to have stalled in recent months, with recent reports suggesting that the Cupertino model may not appear until 2024. Potential partnerships with companies like Nissan, Hyundai, and Kia all seem to have fizzled, and recent articles have even suggested that iPhone maker Foxconn and other existing contractors could be asked to build the Apple Car.

The Apple Car is expected to be quite special, with LiDAR-based navigation, AI management, and monocell battery technology, among many other eye-catching features.

Whether Xiaomi's electric car will be as technologically advanced remains to be seen, but it is certainly doing well enough on the smartphone front. Last year, the company surpassed Apple to become the world's third-largest smartphone maker, and recently gave the Mi 11 a high four-star rating.