Geely acquires 30% stake in Nio Power through battery swap assets and cash
Geely Holding Group has recently formalized a strategic partnership with Nio Inc., a key player in the electric vehicle market, focusing on battery swapping technology and charging infrastructure. This collaboration aims to enhance both companies’ capabilities in the rapidly evolving electric vehicle sector, laying a solid foundation for joint operational integration.
According to a media source, the definitive agreement, signed on September 28, 2026, will see Geely acquire a 30% stake in Nio Power, Nio’s battery swap subsidiary. In return, Geely will contribute its battery swap enterprise, Yiyi Power, along with a cash infusion of 640 million yuan, equivalent to approximately .8 million. The post-transaction valuation of Nio Power is estimated at around 16 billion yuan, or .37 billion.
Post-transaction, Nio China will maintain a controlling interest in Nio Power, holding 63.6% of the equity. The remaining 6.4% will be owned by the Wuhan Guangchuang Emerging Technology Phase I Venture Capital Fund Partnership. This investment is not only a financial maneuver but also represents a shift from technical collaboration to a more integrated business model, which might significantly enhance the operational efficiency of both enterprises.
Furthermore, Geely’s involvement will see its battery swap operations for commercial fleets integrated into Nio Power. As part of this deal, performance milestones will dictate Geely’s final ownership stake, which could decrease under certain conditions but cannot fall below 20%. Geely also holds the option to invest an additional 640 million yuan, potentially increasing its stake to 34%.
In addition to the equity-based collaboration, Nio China is set to acquire a 10% interest in Geely’s Zhejiang Haohan Energy Technology Co Ltd, enabling a broader expansion of their combined charging networks. This will facilitate shared infrastructure, allowing both companies to optimize their resource management while improving the user experience for electric vehicle customers.
Nio aims to significantly expand its battery swapping network, targeting the operation of 10,000 swap stations by 2030. This ambitious plan anticipates an annual electricity demand exceeding 10 billion kilowatt-hours. Geely complements this by targeting the establishment of over 22,000 charging stations equipped with more than 100,000 charging connectors by the end of 2027, underscoring the growing demand for efficient charging solutions in the electric vehicle market.
The partnership builds on previous collaborations between Nio and Geely, which began in November 2023. With substantial financial backing and a shared vision for the future of electric mobility, both companies are strategically positioned to capitalize on emerging opportunities in the sector, promising to enhance the landscape of sustainable transportation.
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