CATL, Nio Sign $346M Deal to Expand Battery-Swapping Grid
Deal Follows BYD鈥檚 5-Minute Charge Lineup
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The world鈥檚 largest battery manufacturer, Contemporary Amperex Technology Co. Ltd., has agreed to invest up to 2.5 billion yuan ($346 million) in building out a battery-swapping network across China in collaboration with electric vehicle maker Nio Inc.
The partnership agreement, signed in the southeastern city of Ningde, where CATL is based, will see the two companies work together on expanding their EV battery-swapping network, consolidating technical standards and enhancing business cooperation, according to a statement released by Nio on March 18.
CATL will make an investment capped at 2.5 billion yuan in Nio Power, which runs the carmaker鈥檚 battery-swapping system, and will help develop the network further. Nio will adopt the battery maker鈥檚 technical standards and network for future models of its new Firefly mass-market brand, the statement said.
鈥淭his cooperation is beyond capital investment 鈥 it facilitates mutual empowerment in technological standards and service systems,鈥 said William Li, Nio鈥檚 CEO.
NIO and CATL Form Strategic Partnership on Battery Swapping
NIO and Contemporary Amperex Technology Co., Ltd. ("CATL") signed a strategic partnership in Ningde, Fujian. Together, they will advance the high-quality development of the new energy vehicle industry by building a鈥 鈥 NIO (@NIOGlobal)
Founded in 2014, Nio manufactures EVs that allow the driver to replace a depleted battery with a charged one in a few minutes. While faster than charging, the company鈥檚 battery-swapping system requires significant ongoing investment and operational costs, raising concerns it could drain resources before providing a clear competitive advantage.
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This isn鈥檛 the first collaboration between the two companies. CATL set up a battery-management company with Nio in 2020 that allows customers to buy a car with leased, swappable and upgradeable batteries. CATL also launched its own battery-swapping solution in 2022 and doubled down on its efforts with a subscription plan last year.
The agreement comes as China鈥檚 EV giant, BYD Co., unveiled a lineup of electric vehicles that it says can charge in as little as 5 minutes, almost as fast as it takes to refuel a regular car. The announcement pushed the company鈥檚 shares up as much as 6% at the open of trading in Hong Kong March 18.
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