Nio (NYSE: NIO) stock jumped more than 5% in pre-market trading Tuesday following news of a strategic partnership with CATL, a leading Chinese battery manufacturer. The two companies signed an agreement on March 17 in Ningde, Fujian province, where CATL is based, to develop a battery swap network for electric vehicles.
The collaboration aims to build the world’s largest and most advanced battery swap service network for passenger cars. Nio and CATL will work together on a full range of products, focusing on unified battery standards to enhance sharing and accelerate the growth of battery swap services.
In a statement, CATL said it will support Nio in developing the battery swap network, while its Choco-Swap technology standard and network will be incorporated into newly developed models under Nio’s new Firefly brand.
The two networks will operate in parallel, providing EV users with a more seamless and efficient battery swap experience. This setup is designed to make traveling with pure electric vehicles easier and more practical for drivers.
Nio (NYSE: NIO) and CATL also plan to promote the development and adoption of national standards for battery swap technology in China. Their goal is to improve battery compatibility across various brands and models, benefiting the broader EV market.
The partnership extends to managing the complete battery lifecycle, including research, swapping services, asset management, reuse, and recycling. This approach aims to reduce costs and increase efficiency across the new energy vehicle (NEV) value chain.
In addition, the two companies will explore capital collaboration, with CATL planning an investment of up to RMB 2.5 billion ($346 million) in Nio Power to strengthen their strategic partnership.
Nio (NYSE: NIO) said the partnership combines technology, capital, and business efforts to create a synergy where “the whole is greater than the sum of its parts.” The EV maker sees this as a way to maximize their joint potential.
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Maria Reed is a financial journalist with a passion for covering US equities. She joined the ABBO News team in June 2023. Maria holds an M.S. degree in International Economics and Finance from Otto-von-Guericke University in Magdeburg and is a CFA Level 2 candidate. Read Full Bio
