Chinese electric vehicle (EV) maker Nio has deepened its partnership with Zhejiang Geely Holding Group after agreeing to sell a stake in its battery swap subsidiary to the automotive conglomerate in a deal that values the unit at 16 billion yuan (US$2.4 billion).
Geely Holding, controlled by Chinese billionaire Li Shufu, would pay 640 million yuan in cash and contribute its wholly owned battery-swapping unit Yiyi Internet Technology in exchange for a 30 per cent share in Nio Power, Nio said in a filing with the Hong Kong stock exchange on Monday.
The transaction would pave the way for the two companies to co-develop unified battery swapping standards and new models based on the technology, Nio added.
The agreement reflected “industry recognition of Nio’s battery swapping technologies, network and operational capabilities”, the company said in the filing. “Nio expects to further promote the adoption of battery swapping, continuously enhance user experience, accelerate the growth of electric vehicle penetration and further unlock the long-term value of battery swapping.”
Battery swap technology allows EV users to exchange a spent battery pack for a charged one in less than three minutes at a dedicated swapping station. It is designed to ease anxiety over range and slow charging.
Shanghai-based Nio has been actively promoting the technology over the past three years, forming partnerships with leading Chinese automotive groups including Geely Holding and FAW.
All Nio models feature the technology, which also allows users to charge their batteries in the conventional way.
In November 2023, Nio and Geely signed a pact to collaborate on expanding swapping stations and improving operating capabilities.
“An accelerated pace of electrification in China’s automotive industry has ushered in huge demand for fast-charging and swapping technologies,” said Eric Han, a senior manager at Shanghai consultancy Suolei. “Nio Power is one of the beneficiaries since it has already built a vast network of swapping stations.”
As of early August, Nio owned and operated more than 4,000 such stations, most of which could navigate cars into position automatically.
EVs hit a record market share of 65.2 per cent last month in mainland China as the US-Israel war with Iran drove a shift away from petrol cars, according to data from the China Passenger Car Association.
Geely Holding, which owns Volvo Cars and a stake in Mercedes-Benz Group, is also developing fast charging technology, which could threaten swapping technology by easing drivers’ range anxiety.
Early this month, Geely Auto, the Hong Kong-listed subsidiary of the group, unveiled its new technology, which charges the batteries in its Lynk and Zeekr models from 10 per cent to 70 per cent in less than five minutes.
