Nio and Geely Strategic Partnership
Nio and Zhejiang Geely Holding Group announced a strategic partnership agreement focused on advancing battery swapping technology. This collaboration, which follows Nio’s recent partnership with Changan Automobile (000625.SZ), underscores the growing trend among Chinese automakers to optimize electric vehicle (EV) capabilities and reduce costs.
Geely Entry into Battery Swapping
Geely, known for brands like Volvo and Zeekr, becomes the second automaker, after Changan, to join forces with Nio on battery swapping initiatives. This innovative technology enables drivers to quickly replace depleted battery packs with fully charged ones, offering an alternative to traditional charging methods.
A Collaborative Model for Innovation
The partnership between Geely and Nio is founded on a “co-investment, co-construction, shared, co-operative” model. Their joint efforts will focus on establishing an efficient battery asset management mechanism, developing a unified battery swap operation, and creating battery-swappable vehicles compatible with each other’s systems.
Nio’s pursuit of cost reduction aligns with its strategic move into battery swapping, a trend that could alleviate pressure on power grids during peak charging times. However, industry experts highlight the need for standardized batteries for widespread feasibility.
In their joint venture, Nio and Geely plan to significantly expand the number of battery-swapping stations in China in the coming year. Nio, in particular, aims to nearly double the total number of stations in 2023. Geely, with a global perspective, expressed its ambition to establish 5,000 battery-swapping stations for EVs worldwide by 2025. Currently, Geely has 300 operational stations and intends to continue building them independently and in collaboration with Nio. This collaboration signals a collective effort by Chinese automakers to enhance EV infrastructure and embrace battery swapping as a viable power option for the future.
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