NIO, Geely Strike Deal on Battery Swapping and Charging

Chinese electric vehicle manufacturer NIO has entered a strategic agreement with Zhejiang Geely Holding Group to strengthen cooperation in battery swapping and charging infrastructure, highlighting the growing competition among Chinese automakers to develop faster and more convenient energy solutions for electric vehicles. Under the agreement, Geely Holding will acquire a 30% stake in NIO Power, NIO's battery-swapping and charging division, through the transfer of its entire ownership in battery-swapping subsidiary Yiyi Power and a cash contribution of 640 million yuan, or about $95 million. The transaction places NIO Power's valuation at approximately 16 billion yuan, according to NIO.

The partnership comes as Chinese electric vehicle manufacturers intensify investment in charging and battery-swapping technologies. NIO has already established more than 4,000 battery-swapping stations across China, where drivers can replace a depleted battery with a fully charged one in roughly three minutes. The company plans to expand its network to 10,000 battery-swap stations by 2030. NIO expects these facilities to generate annual electricity demand of more than 10 billion kilowatt-hours once the planned network is fully developed.

Geely is pursuing an equally ambitious expansion of its charging infrastructure. The company plans to increase its network to more than 22,000 charging stations by the end of 2027. Its automotive affiliate Geely Auto recently introduced charging technology capable of replenishing an electric vehicle in about four minutes, underscoring the rapid pace of innovation in China's EV sector.

The competition extends beyond NIO and Geely. BYD, another major Chinese electric vehicle manufacturer, has been developing a large network of high-speed charging stations. Automakers are increasingly treating charging infrastructure as a critical part of their competitive strategy because faster charging and broader network coverage can reduce concerns about driving range and charging availability.

NIO and Geely said their cooperation is intended to create a denser and more dependable energy network for electric vehicle users. Rather than maintaining completely separate infrastructure systems, the companies plan to work toward greater compatibility and efficiency. They will jointly develop unified battery-swapping standards and compatible vehicle models, potentially making battery swapping more accessible across different brands.

The agreement also leaves room for other automakers and industry participants to participate. NIO Chief Executive William Li said the cooperation is open to additional companies, signaling an effort to establish broader industry standards rather than limiting the system to NIO and Geely vehicles. Wider participation could increase the usefulness of battery-swapping infrastructure by allowing more drivers and vehicle models to access the same network.

The transaction is structured as a two-way investment. While Geely Holding will acquire a 30% interest in NIO Power, NIO will also purchase a 10% stake in Geely's smart-charging subsidiary, Haohan Energy. This arrangement gives both companies a direct financial interest in the development of each other's energy businesses and strengthens their incentives to cooperate on infrastructure.

NIO's shares rose 3.2% after the announcement, recovering from declines during the previous two trading sessions. The market response reflected investor attention to the potential benefits of combining infrastructure resources and accelerating network expansion.

The partnership represents a broader shift in China's electric vehicle industry toward cooperation in infrastructure alongside competition in vehicle manufacturing. As automakers race to improve charging speeds and battery-swapping capabilities, standardized networks and expanded infrastructure could become increasingly important to the growth of electric vehicle adoption.