NIO to Sell 30% Stake in Battery-Swapping Unit to Geely at $2.4 Billion Valuation
By Jiahui Huang
Chinese electric-vehicle maker NIO is selling a 30% stake in its battery-swapping unit to auto conglomerate Geely Holding Group in a deal valuing the business at around $2.4 billion.
Under the terms announced Monday, Geely will contribute 640 million yuan cash, or about $95.3 million, and its own battery-swapping services arm, Yiyi Internet Technology, in exchange for newly issued equity in NIO Power, a subsidiary of the EV maker that operates its battery swapping and charging businesses.
NIO will retain a 63.6% share in NIO Power while Geely will hold 30%. An existing investor--a state-backed investment fund--will hold the remaining 6.4%.
Geely's stake is tied to operational milestones, and could be reduced to no less than 20% if NIO Power underperforms. Geely also has the option to invest another 640 million yuan, bringing its share to 34%.
The move marks a significant step for NIO's battery-swapping strategy as it pushes to grow the network into a broader industry platform rather than one just for NIO vehicles.
Swapping stations let drivers replace a depleted battery with a fully charged one, cutting down on vehicle recharging time. The technology has been a central part for NIO's business strategy for years. Recently, it has been ramping up investment in battery-swapping facilities across China recently, competing with rivals to develop faster, more convenient charging that could help bolster EV sales.
Li Auto, Xiaomi, XPeng and Leapmotor are also strengthening their in-house battery capabilities, Macquarie analysts wrote in a recent note.
Last week, Geely unveiled a new EV charging technology that it says will recharge a battery from low to nearly full in under five minutes.
NIO and Geely on Monday also announced preliminary plans for the adoption of battery-swapping technology and related services across Geely's consumer vehicle models and commercial mobility businesses.
The EV company also agreed to subscribe for newly issued equity in Zhejiang Haohan Energy Technology, a Geely subsidiary that operates a battery-charging business.
NIO said it expects to promote the adoption of battery swapping through strategic collaboration with industry players.
Write to Jiahui Huang at jiahui.huang@wsj.com
(END) Dow Jones Newswires
September 27, 2026 23:16 ET (03:16 GMT)
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