Nio And Geely Expand Battery Swap Partnership Through $2.4 Billion Deal

The Nio and Geely Partnership in battery swapping is expanding through a series of transactions that will give both companies ownership interests in each other’s charging businesses. The deals value Nio Power at 16 billion yuan, or about $2.4 billion, and expand cooperation from network connectivity into shared ownership and commercial battery swap operations.

Under the main transaction, a Geely unit will contribute its entire interest in Yiyi Internet Technology, which provides battery swapping services for commercial fleets, along with 640 million yuan in cash. In return, the unit will receive newly issued shares in Nio Power.

Geely takes 30% stake in Nio Power

Following completion of the transaction, Nio China will hold 63.6% of Nio Power, while Geely’s unit will own 30%. Existing investor Wuhan Guangchuang will retain a 6.4% stake.

Geely will also have an option to invest another 640 million yuan in Nio Power. If exercised, its holding could increase to 34%, while Nio China’s stake would fall to 60%, before any adjustment linked to operating milestones.

The option expires at the earlier of 2 years after the transaction closes or Nio Power entering binding agreements for another financing round. Geely’s stake could also fall to at least 20% if specified operating milestones are not achieved.

The transaction brings Geely’s commercial fleet battery swapping operations into Nio Power, giving the combined business an additional segment beyond passenger vehicles. Nio and Geely are also considering broader battery swap applications across Geely related consumer vehicles and commercial mobility operations.

The companies have said those broader plans remain preliminary and will require further discussions before implementation.

The Nio and Geely partnership began with a battery swap agreement in 2023 and expanded to charging network connectivity in 2024. The latest transactions deepen that relationship by linking their ownership interests in charging and battery swapping businesses.

Nio and Geely link charging assets

Nio is also taking a 10% stake in Geely’s Haohan Energy through a separate transaction. Nio China will purchase newly issued shares in the charging business.

Haohan Energy will use the proceeds from the transaction to acquire certain charging assets from Nio. This creates a reciprocal ownership structure in which Nio gains an interest in Geely’s charging business while Geely becomes a significant shareholder in Nio Power.

The transactions connect the companies’ existing infrastructure cooperation with their respective charging and battery swapping operations. For the businesses, the structure also provides a framework for sharing infrastructure and expanding battery services across additional vehicle categories.

Nio’s existing network provides a significant infrastructure base for the partnership. As of September 23, the company had 4,109 battery swap stations in China, including 1,060 located along highways. It also operated 5,301 charging stations.

Nio recently opened a solar powered battery swap station at Xingxingxia in Xinjiang. The station operates without a grid connection and combines solar generation with battery storage to serve vehicles along a highway route.

The latest Nio and Geely partnership could expand the use of Nio’s battery swapping technology beyond its existing vehicle network. The inclusion of Geely’s commercial fleet operations also introduces another potential application for the infrastructure.

For global businesses, the transactions illustrate how automotive partnerships are increasingly extending beyond vehicle manufacturing into charging, battery services, infrastructure, and energy businesses. The Nio and Geely arrangement combines commercial fleet operations, passenger vehicle applications, charging assets, and battery swap infrastructure under connected ownership structures.