NIO, a prominent electric vehicle manufacturer, has recently finalized an agreement to divest a substantial portion of its battery swapping business to Geely Holding. This strategic maneuver underscores a collaborative effort to fortify NIO's innovative battery exchange network. The transaction, valued at a considerable sum, reflects a growing industry trend towards shared infrastructure and accelerated EV adoption.
NIO Power's Strategic Partnership with Geely: A New Chapter in EV Battery Swapping
In a landmark announcement made on a recent Sunday, September 27, 2026, NIO revealed definitive agreements with Geely Holding. A subsidiary of Geely is set to acquire a 30% stake in NIO Power, the operational arm responsible for NIO's battery swapping stations and charging facilities. This deal places NIO Power's post-money valuation at approximately 16 billion RMB, equivalent to about $2.4 billion USD.
The financial structure of the transaction is noteworthy: Geely's contribution largely comprises its own commercial battery swap enterprise, Yiyi Internet Technology (Chongqing), along with an additional 640 million RMB ($94 million USD) in cash. Concurrently, NIO will secure a 10% interest in Zhejiang Haohan Energy Technology, Geely's charging division, through a parallel arrangement.
Post-acquisition, the ownership distribution of NIO Power will see NIO China retaining a 63.6% majority, Geely holding 30%, and the Wuhan Guangchuang venture fund maintaining its 6.4% share. Geely's stake includes performance-based adjustments, allowing for a potential reduction to a 20% floor if operational benchmarks are not met. Furthermore, Geely holds an option to inject an additional 640 million RMB within two years, or sooner if new financing for NIO Power arises, which could increase its share to 34% while reducing NIO's to 60%.
This collaboration marks a pivotal moment for NIO, which has long sought external partners for its capital-intensive battery swap network. Despite having engaged in strategic discussions and partnerships since 2021, this agreement with Geely represents the first instance of substantial asset and cash investment. The regulatory approvals for both transactions are currently pending.
This alliance is poised to significantly impact the electric vehicle landscape in China, particularly in the realm of battery swapping. With Geely's extensive portfolio of automotive brands, including Volvo Cars and Polestar, the potential integration of NIO-compatible battery packs could standardize and expand the reach of NIO's battery swap technology across a broader market segment. This move could solidify NIO's network as a dominant player, offering a compelling alternative to traditional charging and other emerging swap networks.