Geely Holding Group plans to take a 30% stake in Nio Power as the two companies expand their cooperation on electric vehicle charging and battery swapping. Geely will contribute its entire equity interest in battery-swap business Yiyi Power and 640 million yuan ($94.8 million) in cash in exchange for newly issued shares in Nio Power.
Nio announced the definitive agreement with certain Geely Holding subsidiaries on Monday. The transaction implies a post-money valuation of approximately 16 billion yuan ($2.37 billion) for Nio Power, according to Nio’s announcement on the Hong Kong Stock Exchange.
Geely to Join Nio Power Ownership Structure
After completion, Nio China will retain a 63.6% stake in Nio Power, maintaining control of the business. Existing investor Wuhan Guangchuang Emerging Technology Phase I Venture Capital Fund Partnership will hold the remaining 6.4%.
The transaction will bring Geely’s battery-swapping business for commercial fleets into Nio Power. Yiyi Power’s fleet battery-swap operations will subsequently be integrated into Nio Power, which will continue to develop the network.
The deal expands the companies’ existing cooperation from battery-swapping technical standards and network connectivity to direct business integration.
Additional Investment Option
Geely’s final ownership stake will be linked to certain operational milestones. Its stake could be reduced after closing if agreed performance conditions are not met, although it will not fall below 20%.
Geely will also have an option to invest an additional 640 million yuan in cash. Excluding any post-closing equity adjustments, exercising the option would increase Geely’s stake to 34% and reduce Nio China’s holding to 60%.
The option must be exercised within two years after closing or before Nio Power enters into binding agreements for a new financing round, whichever comes first.
Nio to Acquire Stake in Geely Charging Business
The cooperation also includes an equity investment in Geely’s charging business.
Nio China has agreed to subscribe in cash for newly issued shares in Zhejiang Haohan Energy Technology Co Ltd, known as Haohan Energy. Nio China will hold a 10% stake in the company after completion.
Haohan Energy will use the proceeds to purchase certain charging assets from Nio. The investment amount was not disclosed, and the transaction remains subject to regulatory approvals and other closing conditions.
The two companies also plan to connect their charging infrastructure, expand network coverage and improve operating efficiency through cooperation across their respective charging and battery-swapping networks.
Consumer Battery-Swap Plans Remain Preliminary
For the consumer market, Geely and Nio plan to jointly develop battery-swapping technologies and standards. Geely will develop vehicles compatible with battery swapping, while Nio Power will provide battery-swapping services.
Nio’s Hong Kong filing said, however, that the proposed battery-swapping arrangements covering Geely’s consumer models and commercial mobility businesses remain preliminary. Their finalization and implementation will depend on further discussions between the parties.
Nio said the broader partnership will support the expansion of its battery-swapping network. Nio Power aims to operate 10,000 battery-swap stations by 2030, with annual electricity demand across the network expected to exceed 10 billion kWh.
Geely plans to build more than 22,000 charging stations with over 100,000 charging connectors by the end of 2027. More than 15,000 of these are planned to be smart charging stations with over 50,000 smart charging connectors.
