Battery swapping has been a concept for electric vehicles for much longer than I’ve been covering the technology (which is more than 14 years). Better Place launched and grew, and then went bankrupt. Some other battery swapping trials have come and gone much more quietly. And then there’s NIO. NIO went big on the battery swapping idea, vastly dwarfing any other efforts historically. But did it make sense? Was NIO an outlier because it identified and implemented the benefits of a system everyone else ignored or gave up on? Or was NIO an outlier because it liked the idea of battery swapping but battery swapping was destined to fail? I think most people reading CleanTechnica would go with the idea that EV battery swapping is destined to fail — but I really don’t know if that’s true (I haven’t polled you all on it). If that’s the case, though, the latest battery swapping news may have them reconsider. As it turns out, Chinese auto giant Geely has seen enough worth in NIO’s battery swapping that it has invested into it. This is no small peanuts of an investment either. Geely Holding Group is buying a whopping 30% stake in NIO Power, the company’s batter-swapping arm. “NIO Holding Co., Ltd. (“NIO”) and Zhejiang Geely Holding Group Co., Ltd. (“Geely Holding Group”) entered into a comprehensive strategic cooperation in charging and battery swapping. The two sides have reached broad agreement on cooperation across technology, operations, and capital, and will jointly invest in their charging and battery swapping businesses, share technologies and standards, and develop a shared service network. The partnership marks a new model for open and mutually beneficial cooperation in China’s automotive industry,” NIO shares. “Under the agreement, Geely Holding Group will invest in NIO Power through a combination of its 100% equity interest in Yiyi Power, a subsidiary of Geely Holding Group, and RMB 640 million in cash. Upon completion of the transaction, Geely Holding Group will hold a 30% stake in NIO Power. Yiyi Power’s battery swapping business for commercial mobility services will subsequently be integrated into NIO Power. NIO Power will continue to optimize its battery swapping network for commercial fleets, supporting the growth of Yiyi Power’s commercial mobility business. In the meantime, the two sides will co-develop unified battery swapping technologies and standards for consumer-facing vehicle models. Geely Holding Group will develop consumer-facing battery-swappable vehicle models, while NIO Power will provide battery swapping services for these models. “In the smart charging business, NIO will invest in Haohan Energy, a subsidiary of Geely Holding Group. Upon completion of the transaction, NIO will hold a 10% equity stake in Haohan Energy. The two sides will fully connect their charging infrastructure, jointly expanding coverage and improving the operational efficiency of their charging networks.” Where does all of this lead next? Who knows! However, clearly, Geely values the work put in by NIO and the potential for successful battery swapping for years to come. Andy AN Conghui, CEO of Geely Holding Group, said: “High-quality development of the automotive industry is not about scale alone. It calls for more resilient supply chains, higher quality and greater efficiency, safer and greener development, and a more open and collaborative ecosystem. Recharging networks are public infrastructure that serve society as a whole. They should be built together, shared openly, and connected across networks, so that users ultimately benefit the most. Geely Holding Group has long driven innovation in core new energy vehicle technologies, building an all-scenario recharging network that combines charging and swapping. This partnership marks another step toward the high-quality development of China’s intelligent connected new energy vehicle industry. With an open approach and a long-term commitment, Geely Holding Group will work with NIO and other industry partners to build a denser, more reliable, and safer recharging network, making mobility more seamless and worry-free for users.”
