Chinese battery manufacturer Contemporary Amperex Technology Co. Limited (CATL) is in discussions to acquire a controlling interest in Nio Inc.’s power unit, which operates over 3,000 battery swapping stations across China, according to sources familiar with the matter.
The potential acquisition follows CATL’s announcement in March of a maximum investment of 2.5 billion yuan ($342 million) in Nio Power. While the specifics of the proposed deal have not been disclosed, one source indicated that Nio Power was valued at over 10 billion yuan during a fundraising round in 2024.
When approached for comment, CATL declined to provide further details. Nio did not directly address the acquisition talks but emphasized its commitment to expanding battery swapping infrastructure through collaborations with multiple investors, including CATL. “Nio and CATL will deepen collaboration on capital and business and further consolidate the strategic partnership to jointly build the largest battery swapping network globally,” Nio stated in response to Reuters’ inquiry.
CATL is intensifying its investments in battery swapping technology as part of chairman Robin Zeng’s strategy to transition the company from a battery manufacturer to a comprehensive green energy provider. Recently, CATL partnered with state-owned oil company Sinopec to develop 10,000 battery swap stations, with at least 500 planned for construction this year. This initiative aligns with CATL’s goal to supplant a significant portion of China’s gas stations with battery swapping facilities.
Nio Power, a key division of Nio, offers charging and battery swapping services not only to Nio vehicle owners but also to other electric vehicle brands such as Tesla and BYD. The potential acquisition underscores the growing competition within China’s automotive market, where Nio aims to mitigate consumer concerns regarding the limited range of electric vehicles. To this end, Nio has established approximately 3,240 battery swapping stations, predominantly in China, enabling users to replace a depleted battery pack with a fully charged one in under three minutes. However, these investments have impacted Nio’s profitability. Additionally, Nio is working on developing electric vehicles compatible with battery swapping systems from other manufacturers.
Source: Reuters
