Smartphone maker Xiaomi Corp (1810.HK) is in talks with Beijing Automotive Group Co (1958.HK) to collaborate on producing electric vehicles (EV), Bloomberg News reported on Friday, citing people familiar with the matter.

The two companies are exploring different options including Xiaomi buying a stake in Beijing Hyundai No. 2 plant, which has a license to make cars in China, the report said.

The collaboration could see vehicles built by Beijing Automotive’s EV brand, BAIC BluePark New Energy Technology Co (600733.SS), and co-branded with Xiaomi, the report said.

Xiaomi and BAIC declined to comment, while Hyundai did not immediately respond to a Reuters request for comment.

Beijing Hyundai, the joint venture between Hyundai Motor Co (005380.KS) and BAIC, has three manufacturing plants in Beijing.