Chinese battery giant CATL is in discussions to purchase a controlling stake in Nio Power, the energy arm of electric vehicle maker Nio, according to four people familiar with the matter told Reuters.
The talks follow CATL’s previously announced plan to invest up to RMB 2.5 billion yuan ($342 million) in Nio Power, as part of a broader partnership to expand battery swap infrastructure in China. The value of the proposed acquisition or the size of the controlling stake under discussion was not disclosed. However, one of the sources said that Nio Power had been valued at over RMB 10 billion during a recent funding round in 2024.
See also: Nio, CATL Sign Strategic Deal to Boost Battery Swap Services
Nio and CATL revealed a new partnership on March 18 aimed at building the world’s largest battery swap service network. As part of the arrangement, CATL agreed to advance capital into Nio Power, deepening its involvement in the EV maker’s battery service operations.
Nio Power, founded in 2017 in Wuhan, has played a central role in Nio’s battery swap strategy. As of early 2024, the company operates more than 3,200 battery swap stations in China and around 60 overseas. In May 2024, a RMB 1.5 billion investment by a Hubei government fund marked the unit’s first external financing. After that transaction, Nio’s stake in Nio Power stood at about 90 percent, suggesting a valuation close to RMB 15 billion at the time.
See also: Nio Collaborates with CATL to Develop Long-Lasting Electric Car Batteries
Local media outlet 36kr reported in March that Nio Power’s valuation was later revised to approximately RMB 10 billion in connection with CATL’s planned investment. If completed at that valuation, CATL’s RMB 2.5 billion investment would equate to a 25 percent stake. The report also suggested that CATL may be seeking to acquire additional shares from other stakeholders to strengthen its influence.
CATL has been actively expanding in the battery swap segment since entering the space in January 2022. In December 2024, it unveiled standardized battery packs designed to accelerate adoption and announced a long-term goal of building 30,000 swap stations. The company recently announced a plan with Sinopec to construct more than 500 stations this year, with a target of 10,000 over the longer term.
See also: Nio Collaborates with CATL to Develop Long-Lasting Electric Car Batteries
CATL is also an investor in Mirattery, a battery asset management joint venture established in 2020 by Nio, CATL, Guotai Junan, and Hubei Science Technology Investment. Over time, shareholding changes have left Nio as the largest shareholder with a 19.4 percent stake, while CATL and Hubei each hold 10.68 percent.