Geely and NIO have announced a new comprehensive strategic cooperation agreement on charging and battery swapping that could have major ripple effects across the EV world.
The cooperation agreement will see the companies work together on technology, operations and capital. This includes sharing technology and standards, developing a shared service network and joint investments in charging and battery-swapping businesses.
Under the agreement, Geely will hold a 30% stake in NIO Power, invest RMB 640 million in cash, and take a 100% equity interest in Yiyi Power. NIO Holding Company will retain a 63.6% stake in NIO Power, with an existing early investor, Wuhan Guangchuang Emerging Technology Phase I Venture Capital Fund Partnership, holding 6.4%.
In addition, NIO China will purchase an equity interest in another Geely company, Zhejiang Hoahan Energy. The new cash flow will allow Hoahan Energy to purchase charging assets from NIO. Once the deal is completed, NIO China will own a 10% equity interest in Hoahan Energy.
So, what does this all mean? The two sides will now work collaboratively to co-develop unified battery-swapping technology and standards for consumer and commercial vehicles. It will also give the companies access to the capital they need to support expansion efforts and research and development.
Under the new agreement, Geely will develop consumer vehicle models with battery-swap options, and NIO Power will provide the battery-swapping services. On the commercial side, NIO Power will optimize its battery-swapping network while supporting the growth of Yiyi Power’s commercial mobility business in China.
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