(RTTNews) — NIO Inc. (NIO, NIO.SI, 9866.HK) has signed definitive agreements with subsidiaries of Zhejiang Geely Holding Group to establish a strategic partnership focused on battery swapping and charging infrastructure, deepening collaboration in China’s rapidly expanding electric vehicle market.
Under the terms of the deal, a Geely subsidiary will transfer its full ownership stake in Yiyi Internet Technology (Chongqing) Co., Ltd. — a provider of battery swapping services for commercial mobility clients — along with RMB640 million in cash, in exchange for newly issued shares in NIO Energy Investment (Hubei) Co., Ltd., commonly referred to as NIO Power.
The transaction values NIO Power at a post-money valuation of approximately RMB16 billion. Following closing, the Geely entity will hold a 30% stake in NIO Power, while NIO Holding Co., Ltd. (“NIO China”) will maintain a controlling 63.6% interest. The remaining 6.4% is held by existing investor Wuhan Guangchuang Emerging Technology Phase I Venture Capital Fund Partnership.
The Geely subsidiary’s ownership stake is contingent on post-closing performance benchmarks and may be reduced to a minimum of 20% if certain operational milestones are not achieved. The investor also holds an option to inject an additional RMB640 million within two years of closing or ahead of any new financing round at NIO Power. Should that option be exercised, Geely’s stake would increase to 34%, with NIO China’s share declining to 60%.
In a separate arrangement, NIO China will acquire a 10% stake in Zhejiang Haohan Energy Technology Co., Ltd., Geely’s battery charging subsidiary. Proceeds from the deal will be used by Haohan Energy to purchase select charging assets from NIO.
Beyond the equity transactions, NIO and Geely have committed to broadening cooperation on battery swapping technology and related services spanning passenger vehicles and commercial mobility operations under the Geely umbrella. The partnership is expected to drive wider adoption of battery swapping and accelerate the rollout of charging and energy service networks across China’s fast-growing EV sector.
NIO.SI was trading at $3.6500, up $0.0100 or 0.27%.