Geely to acquire 30% of Nio’s power unit as part of battery swapping, charging business deals

[SINGAPORE] A 30 per cent stake of Chinese electric vehicle giant Nio’s power unit will be acquired by a subsidiary of fellow EV company Geely.

This is part of a number of agreements relating to battery swapping and charging businesses.

As part of this transaction, Geely will also offer a 100 per cent equity interest of its subsidiary, Yiyi Internet Technology, on top of 640 million yuan (US$95 million) in cash.

Yiyi Internet Technology is a unit by Geely that provides battery swapping services for the commercial mobility market.

Post-transaction, Nio Power will be valued at about 16 billion yuan, a statement noted on Monday (Sep 28).

Nio Holdings, a subsidiary of Nio, will continue to hold a controlling equity interest of 63.6 per cent after the deal is completed. An existing investor, Wuhan Guangchuang Emerging Technology Phase I Venture Capital Fund Partnership, will hold the remaining 6.4 per cent.

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“The finalisation and implementation of these plans are subject to further discussions between the relevant parties,” said Nio.

Shares of Nio ended 0.3 per cent or US$0.01 down at US$3.63 on Friday.