Chinese real estate companies have entered the industrial chain of new energy vehicles, investing over 10 billion yuan ($ 1.46 billion) since the start of this year, China Securities Journal reported on Monday.

This June, Evergrande Health Industry Group, a subsidiary of one of China’s leading property developers Evergrande Group, acquired a 45 percent stake of American intelligent electric vehicle company, Faraday Future, when the latter found itself on the verge of bankruptcy.

As many countries have released timetables for banning fuel vehicles, the development of new energy vehicles will become more of a trend, the vice president of Evergrande Group, Peng Jianjun, said during the opening ceremony of Evergrande Faraday Future Intelligent Car (China) Group recently.

It was also disclosed that Evergrande Group plans to establish five R&D and manufacturing bases in China, aiming for an annual output of five million vehicles within 10 years.

On July 30, another leading developer of China’s real estate industry, Beijing Vantone Real Estate Company, announced plans to acquire 78.3 percent of shares of Phylion Battery Company, a power lithium battery developer and manufacturer whose products are mainly found in electric vehicles, hybrid electrical vehicles and energy storage.

According to an announcement from Vantone, upon transaction completion, the company will increase its business in new energy, and give full play to the advantages of the Phylion Battery Company in the field of new energy batteries, so as to provide long-term development opportunities in new profit areas.

Moreover, other Chinese real estate companies including Country Garden, Citychamp Dartong Company and Shanghai Greattown Holdings Limited have also set foot in the industrial chain of new energy vehicles.

Since innovation is challenging in the real estate industry, many real estate companies have sought industrial transformation to develop a diversified industrial model and share the risks of the industry, analyzed a real estate insider, adding that with emerging concepts like new energy vehicles and autonomous driving, the automobile industry will be a hotbed for future investment.

Represented by new energy vehicles, the automobile industry is going to represent new technology, explained Yan Yuejin, director of the Think Tank Center of the E-house China R&D Institute, adding that with the improvement of supporting policies and market acceptance, potential profits will attract more real estate companies.