Internet group Baidu and carmaker Zhejiang Geely Holding Group provided $400m in series A funding for their China-based electric vehicle (EV) joint venture, Jidu, today, as the country’s EV ecosystem develops further.
Incubated in March 2021 with $300m, Jidu is working on an artificial intelligence-enhanced autonomous EV system equipped with machine learning algorithms that help improve its self-driving capabilities.
The series A money will go toward research and development (R&D) efforts and mass production of the company’s products due to begin next year. Its first concept car model is set to be released at the upcoming Beijing Auto Show in April 2022.
Baidu now owns a 55% stake in Jidu while Geely holds the remainder, according to records retrieved from Wind Information seen by CNBC. Baidu first revealed in January 2021 that it would form a smart EV-focused company with Geely.
Robin Li, Baidu’s chief executive, has been keen on diversifying the group’s business strategy from concentrating purely on digital advertising to include innovative fields such as AI technology and autonomous vehicles.
Geely – which also owns Sweden-originated automotive brand Volvo – already runs multiple EV brands including Zeekr and Polestar, both of which have received corporate backing.
Investments in China-based EV companies tripled to $6.6bn in 2021, according to Dealogic. While auto groups in China like BYD and Nio have been active in the EV space, companies in other areas such as consumer electronics manufacturers Xiaomi and Huawei have unveiled plans to enter the space in the past year.
Xiaomi set aside $10bn in March 2021 to invest in the area over the next decade having formed an EV subsidiary, while Huawei has forged alliances with carmakers to produce in-car systems and self-driving technology.
The Chinese government has also shown support for domestic EV players, having most recently issued subsidies of up to $6bn for EV producers through a November 2021 scheme sponsored by the Ministry of Finance.
