NIO and Geely finalize battery swap

NIO announced definitive agreements on Sunday to sell a 30% stake in its battery swap and charging unit, NIO Power, to a subsidiary of Geely Holding. The post-money valuation of NIO Power is about RMB16 billion ($2.4 billion). Geely’s subsidiary will contribute RMB640 million ($94 million) in cash and 100% of Yiyi Internet Technology (Chongqing), a commercial battery swap operator. After the deal closes, NIO China will own 63.6% of NIO Power, Geely will hold 30%, and the Wuhan Guangchuang Emerging Technology Phase I Venture Capital Fund Partnership will retain 6.4%. Both transactions are subject to regulatory clearances and other customary closing conditions.

Strategic rationale and market impact

The partnership aims to expand battery swapping beyond NIO's own vehicles. Yiyi focuses on commercial swapping for fleets rather than private cars. NIO stated there are "preliminary plans to bring battery swapping to consumer models from Geely-related entities, as well as to its commercial mobility businesses." This move reshapes China's fragmented battery swap market, which is splitting into camps led by NIO's network, CATL’s Choco-Swap network, and BYD's bet on ultra-fast charging. A Geely brand shipping NIO-compatible battery packs at volume would make NIO’s network the default for a huge chunk of the market.

NIO Power's current scale and financial context

NIO Power operates a vast network of swap stations. The company had 3,790 swap stations when it passed 100 million swaps in February and is targeting 1,000 more this year. It set a record of 175,976 swaps in a single day earlier this year. The unit has been raising external capital. Its first outside investment came in May 2024: RMB1.5 billion led by the Wuhan Guangchuang fund. In March 2025, NIO said CATL was advancing an investment capped at RMB2.5 billion in NIO Power. If nothing else changed in the cap table, NIO Power was valued at roughly RMB16 billion in 2024.

Future adjustments and contingencies

Geely's stake is not fixed. It can be adjusted after closing based on operational milestones, down to a floor of 20% if the business underperforms. NIO did not specify what the milestones are. Furthermore, Geely has an option to invest another RMB640 million within two years, or sooner if NIO Power lines up new financing. That option would lift Geely’s stake to 34.0% and cut NIO China’s holding to 60.0% before any adjustment. The option runs until two years after closing, or until NIO Power signs binding agreements for a new funding round, whichever comes first. Both transactions still need regulatory approval.