Geely Acquires 30% Stake in NIO Power
The deal involves a cash investment of RMB 640 million and the integration of Geely's Yiyi Power subsidiary into NIO's battery-swapping network.
Chinese automotive giant Geely Holding Group has entered into a comprehensive strategic cooperation with NIO, acquiring a 30% stake in NIO Power, the electric vehicle maker's battery-swapping subsidiary.
What Happened
Under the agreement, Geely Holding Group will invest in NIO Power through a combination of its 100% equity interest in Yiyi Power, a Geely subsidiary, and RMB 640 million in cash. Upon completion of the transaction, Geely will hold a 30% stake in NIO Power. Yiyi Power’s battery-swapping business for commercial mobility services will be integrated into NIO Power, which will continue to optimize its network for commercial fleets. Additionally, NIO will invest in Haohan Energy, a subsidiary of Geely Holding Group, acquiring a 10% equity stake in the smart charging business. The two companies stated they will fully connect their charging infrastructure to jointly expand coverage and improve operational efficiency.
Why It Matters
This partnership signals a significant shift in the Chinese EV market, where battery swapping has historically been viewed by many as a niche or failing strategy compared to fast charging. By integrating Yiyi Power’s commercial mobility swapping operations with NIO’s established network, the companies aim to create a shared service infrastructure. The agreement also outlines plans for Geely to develop consumer-facing battery-swappable vehicle models, with NIO Power providing the necessary swapping services. This move validates NIO’s technology and infrastructure investments, potentially encouraging other automakers to consider battery swapping as a viable complement to charging networks.
The Bottom Line
Geely’s acquisition of a 30% stake in NIO Power, coupled with the integration of Yiyi Power and a cross-investment in Haohan Energy, establishes a major collaborative framework for battery swapping and charging infrastructure in China. The deal aims to unify standards and expand network coverage for both consumer and commercial EV users.
