NIO, a leading Chinese electric vehicle (EV) maker, has announced a strategic partnership with Wencan Group, a supplier of one-piece die-casting parts, to provide supply support near its Hefei plants. The five-year cooperation framework agreement will involve collaboration on supply, low carbon, digitalization, and globalization, as well as deep research and development on lightweight die-casting structural parts for the body and new material applications. The two companies will also explore all-round cooperation in products such as integrated battery boxes, core EV components, and automotive chassis.
Wencan, one of China’s leading suppliers of integrated die-casting parts and a core supplier of structural body parts to NIO, plans to supply products near the NIO plants by 2025. The two companies will work together to arrange capacity expansion plans, including investing in new production lines or building new production sites, to ensure smooth production and delivery of NIO projects.
Additionally, Wencan will use its global presence to provide full support to NIO’s international business and global R&D and product validation. NIO, in turn, will promote Wencan’s casting business to its partners and explore cooperation in other business areas.
The new agreement with Wencan is the second NIO has signed with a parts giant this month. On March 16, Tesla’s parts supplier Ningbo Tuopu Group announced a strategic partnership with NIO for the development, manufacture, and supply of NEV parts and components. One of the goals of the partnership is for Ningbo Tuopu to provide parts supply near NIO’s factories in Hefei.
The partnership with Wencan and Ningbo Tuopu is in line with NIO’s focus on securing a reliable supply chain to support its growth in the global EV market. The company has been expanding its production capacity and has launched new models to cater to the increasing demand for EVs. NIO’s collaboration with Wencan and Ningbo Tuopu is expected to enhance its capabilities and competitiveness in the industry.
