EVwire brief: NIO and Geely Holding Group have signed definitive agreements covering their battery swapping and charging businesses, combining investments, technology, infrastructure and plans for greater interoperability between the two companies.
Under the deal, a Geely subsidiary will contribute its 100% stake in Yiyi Internet Technology, which operates battery-swapping services for commercial mobility, along with RMB 640 million ($89 million), to acquire a 30% stake in NIO Power. The transaction values NIO Power at approximately RMB 16 billion ($2.2 billion) after the investment. NIO China will retain a controlling 63.6% stake.
The agreement also works in the other direction. NIO China will invest in Geely subsidiary Haohan Energy, which operates a charging business, and will receive a 10% stake. The cash from that transaction will be used by Haohan Energy to purchase certain charging assets from NIO.
The companies also have preliminary plans to bring battery-swapping technology and related services to Geely-affiliated consumer and commercial vehicle businesses. Those plans still need to be finalized through further discussions.
NIO Power’s existing charging and battery-swapping network across China
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William Li, NIO's co-founder and CEO, described the agreement in a post on LinkedIn:
Proud to share that NIO and Geely have entered into comprehensive strategic partnership in charging and battery swapping! We've reached broad agreement on cooperation across technology, operations, and capital, and will jointly invest in our respective charging and battery swapping businesses, share technologies and standards, and develop a shared service network. Together, we're exploring a new model for open collaboration and mutually beneficial cooperation in China's automotive industry. Let's Power Up! Let's Jiadian!
The transaction remains subject to regulatory approvals and other closing conditions. Geely's initial 30% stake in NIO Power is also tied to operational milestones and can be reduced to no less than 20% if certain targets are not met.
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Context:
The agreement arrives as China's EV charging industry is entering a new generation of high-power charging technology. Geely recently unveiled its fifth-generation Smart Charging system with a claimed peak output of 2.25 MW, while BYD's latest Flash Charging system reaches 1.5 MW and XPeng's X-Energy system reaches 1 MW.
These systems are being developed around much faster charging times than conventional fast charging. Geely says its system can take compatible vehicles from 10% to 70% in 4 minutes and 30 seconds, while BYD claims five minutes for the same range of charge. The technologies are still at different stages of deployment, with BYD currently having the largest network among the three.
Source: NIO Investor Relations and William Li on LinkedIn
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