China FAW Group Corporation (FAW) is set to join the Nio-led battery swap alliance, becoming the seventh member to do so, according to a report by local media outlet Cailian.
The battery swap alliance, which already includes GAC Group, Changan Automobile, Geely Holding, Chery, JAC, and Lotus, will now see FAW as its newest addition. Nio’s founder, chairman, and CEO, William Li, had previously indicated that more brands were expected to join the alliance in the future.
Li views the battery swap business as akin to a cloud service and has started to consider its future beyond just the premium segment, the report stated.
Nio has ambitious plans for its battery swap network, aiming to add 1,000 new swap stations in China this year. The company currently operates 2,416 stations across the country.
In envisioning the future, Li has expressed the hope of expanding the battery swap network to more than 10,000 stations with the participation of additional alliance members. This scale, he believes, could support service for up to 10 million vehicles, fundamentally altering the business dynamics of battery swap services.
Describing the battery swap service as similar to a cloud service, Nio is exploring the possibility of opening up the service to partners, Li has mentioned.
The partnership between Nio and Changan, signed on November 21, 2023, marked a significant step in the expansion of the battery swap network. Changan became the first external member of the Nio-led battery swap alliance, agreeing to collaborate on building and sharing the network and developing models compatible with battery swap technology.
