Geely Holding Group will acquire a 30% stake in Nio Power, Nio's battery replacement division, and thereby expand cooperation with one of the most prominent players in the Chinese electric vehicle market. According to Nikkei, the deal reflects a general wave of mergers and partnerships in the industry, where companies are looking for ways to reduce costs and accelerate infrastructure development.
Under the terms of the agreement, Geely will contribute 640 million yuan, or about $95 million, and will also transfer its subsidiary Yiyi Power, which specializes in commercial battery replacement, to Nio Power. This will allow the parties to combine their competencies and actually create a broader technological base for the development of electric vehicle maintenance services.
The companies intend to jointly develop technologies and standards for battery replacement for passenger cars. Geely, in turn, will produce models compatible with this system, and Nio Power will focus on managing the network of replacement stations. Nio Power expects to increase the number of such stations to 10,000 by 2030. According to the company's estimates, at this scale, annual electricity consumption will exceed 10 billion kWh.
After the deal closes, Nio China will retain control of Nio Power, which will own 63.6% of the shares. Another 6.4% will remain with the existing investment fund from Wuhan. Separately, Nio will receive 10% in Geely's Haohan Energy charging infrastructure business. Against this background, both sides are also planning to combine their charging networks.
Geely has announced plans to create more than 22,000 charging stations equipped with over 100,000 connectors by the end of 2027. The company expects that the expansion of infrastructure will help strengthen its position in a rapidly changing market and increase convenience for electric vehicle owners.
The cooperation between Geely and Nio began back in 2023 and gradually developed into a closer alliance. For the Chinese electric vehicle market, this is another signal that competition is increasingly giving way to joint projects, technology exchange, and consolidation of infrastructure assets.
