Geely has made a large-scale investment of about 2 billion euros (approximately 16 billion yuan) in the specialized quick-change battery unit of its competitor Nio – Nio Power.
According to the officially announced parameters of the deal, Geely acquires a 30% stake in Nio Power, with a large part of the transaction not being covered by direct financial means, but by transferring Geely's own assets in the field of commercial battery exchange networks, combined with a targeted cash transfer. As part of the joint agreement, the two companies also launch a reciprocal cross-investment, with Nio entering with a 10% stake in Geely's charging unit – Haohan Energy.
The move aims to bring together the two giants in building a large-scale shared infrastructure and standardized technologies for charging and replacing power units. Analysts say such partnerships are vital to quell the sector’s debilitating price war and streamline the colossal maintenance costs of hundreds of quick-access power stations across China.