China’s Nio teams up with Geely on battery swapping

The deal makes Geely the second automaker to sign a battery swapping partnership with Chinese electric vehicle maker Nio. — Reuters

BEIJING: Chinese automakers Nio and Zhejiang Geely Holding Group say they have signed a strategic partnership agreement on battery swapping that would see them work together on standards, technology and model development.

The deal makes Geely, whose brands range from Volvo to Zeekr, the second automaker to sign a battery swapping partnership with Chinese electric vehicle (EV) maker Nio.

Nio, which has been looking to lower costs, announced a tie-up with Changan Automobile last week.

Battery swapping allows drivers to replace depleted packs quickly with fully charged packs, rather than plugging the vehicle into a charging point.

Geely and Nio will adopt a “co-investment, co-construction, shared, co-operative” model, the companies said.

They will look to establish an efficient battery asset management mechanism, build a unified battery swap operation and develop battery-swappable vehicles compatible with each other’s battery-swap systems, the companies added after announcing the partnership yesterday.

Nio has been looking to improve profitability. It has trimmed its workforce and deferred long-term investments to improve efficiency and reduce costs in the face of growing competition since US auto maker Tesla kicked off a price war at the start of the year.

Battery swapping could ease the strain on power grids at peak times when drivers recharge, but industry analysts and executives expect it would only become feasible if batteries become more standardised.

Nio, with a plan to nearly double the total number of such stations in China this year, is one of a handful of EV makers betting on battery swapping as a major power option for EVs.

In 2021, Geely said it aimed to set up 5,000 battery swapping stations for EVs globally by 2025.

Geely said it currently had 300 stations in operation and it would now continue to build stations alone as well as jointly with Nio. — Reuters

Follow us on our official WhatsApp channel for breaking news alerts and key updates!

Next In Business News

Pharmaniaga reports narrower loss for FY23 on restructuring initiatives
Affin Bank records improved 4Q net profit of RM39.35mil
Kerjaya Prospek records higher 4Q net profit of RM35.74mil
FBM KLCI maintains slight lead on final day of results period
Malaysia expects ringgit to rise this year, rules out currency peg
Ringgit rebounds to open higher against US$
Aluminium prices to remain under pressure in 2024
Soaring bitcoin set for sharpest monthly jump since 2020
Japan factory output falls at the fastest pace in nearly 4 years
FBM KCI rebounds slightly but volatility remains

Others Also Read