(RTTNews) - NIO Inc. (NIO,NIO.SI,9866.HK) announced that it has entered into definitive agreements with subsidiaries of Zhejiang Geely Holding Group to form a strategic partnership in battery swapping and charging, advancing cooperation in China's electric vehicle infrastructure market.
Under the deal, a Geely subsidiary will contribute its entire stake in Yiyi Internet Technology (Chongqing) Co., Ltd., a provider of battery swapping services for commercial mobility customers, along with RMB640 million in cash, to acquire newly issued equity in NIO Energy Investment (Hubei) Co., Ltd., known as NIO Power.
The transaction values NIO Power at a post-money valuation of approximately RMB16 billion. Upon closing, the Geely unit will hold a 30% stake in NIO Power, while NIO Holding Co., Ltd. ("NIO China") will retain a controlling 63.6% interest. Existing investor Wuhan Guangchuang Emerging Technology Phase I Venture Capital Fund Partnership will own the remaining 6.4%.
The Geely subsidiary's ownership is subject to post-closing performance adjustments and could be reduced to no less than 20% if certain operational milestones are not met. The investor also received an option to make an additional RMB640 million investment within two years of closing or before NIO Power completes a new financing round. If exercised, Geely's stake would rise to 34%, while NIO China's holding would decrease to 60%.
Separately, NIO China agreed to acquire a 10% stake in Zhejiang Haohan Energy Technology Co., Ltd., Geely's battery charging business subsidiary. The cash proceeds will be used by Haohan Energy to purchase certain charging assets from NIO.
Beyond the equity investments, NIO and Geely outlined plans to expand collaboration on battery swapping technology and related services across passenger vehicles and commercial mobility operations affiliated with Geely. The move is expected to strengthen adoption of battery swapping solutions and accelerate the development of charging and energy service networks in China's rapidly growing EV market.
NIO.SI was trading at $3.6500 up $0.0100 or 0.27%.