Chinese automakers Nio and BYD are reportedly in talks for a battery supply collaboration, signaling a strategic move in the competitive electric vehicle (EV) market. Nio is eyeing BYD batteries for its new affordable EV brand, aiming to rival Tesla in the lower-priced segment.
Sources familiar with the matter revealed that Nio’s new EV brand, named Onvo in English and Ledao in Chinese, is geared to directly compete with Tesla. The brand’s first model, the Onvo L60, is set to challenge Tesla’s Model Y.
Initially, Nio had planned to manufacture its own batteries but abandoned this plan in December 2023. Instead, the company shifted focus to cost reduction and profit turnaround strategies.
On the other hand, a partnership with Nio could significantly boost BYD’s revenue. BYD, known for its EV production, is seeking to diversify into the battery supply chain, a move that aligns well with China’s increasingly competitive EV market.
Nio already enjoys a partnership with CATL, a leading global battery supplier. However, the collaboration with BYD indicates a strategic expansion of Nio’s battery supply network.
William Li, Founder and CEO of Nio, emphasized the critical importance of addressing battery life challenges in the industry. He stated, “One of the most important problems that has fundamentally not been solved nor attracted widespread attention is battery life. This is not only a problem that Nio needs to solve, but one that the whole industry must work together to solve.”
