Smartphone big Xiaomi’s ambitions to launch a automobile model could get a jumpstart by way of the acquisition of a stake within the Chinese language firm that owns NEVS, the Swedish electric-vehicle startup born out of the stays of Saab.

NEVS is owned by Evergrande Group, a conglomerate that has amassed large money owed from its foremost actual property enterprise and is seeking to increase funds by offloading property.

Citing unnamed sources, Reuters reported final week that Evergrande is in talks with Xiaomi and state-backed funding companies concerning the sale of a minority stake in its Evergrande New Power Automobile automobile unit. The automobile unit consists of NEVS, in addition to Evergrande’s personal automobile model, Hengchi, which in April unveiled a minimum of 9 EVs. The automobile unit additionally has three crops in China, in addition to the previous Saab plant in Sweden.

Evergrande already offered 2.66% of its automobile unit in Might to varied traders in a deal price about $1.36 billion. The automobile unit reported a lack of about $740 million for the primary half of 2021.

Evergrande stated in an announcement that it has had preliminary talks about Xiaomi turning into a shareholder, although no different particulars have been talked about.

Xiaomi has additionally confirmed it’s in talks with a number of automakers however hasn’t decided on which one to work with.

Based on Reuters‘ sources, the talks between Evergrande and Xiaomi are nonetheless at an early stage.

Xiaomi, which has already surpassed Apple to turn out to be the world’s second largest smartphone producer, in April introduced plans to take a position $10 billion over the subsequent decade to develop a automobile model. Xiaomi CEO and founder Lei Jun has since stated the corporate additionally desires to develop self-driving expertise—a expertise NEVS has been creating with its companions for a number of years.