NIO will build a high-voltage battery pack by 2024 that they have developed themselves. The move to produce electric vehicle batteries is seen as an effort to increase profitability and competitiveness among other electric vehicle manufacturers such as Tesla.
Nio will start producing 800-volt battery packs in the second half of 2024, NIO CEO William Li told analysts by telephone on Thursday.
For this reason, NIO has more than 400 employees working on research and development of battery technology. In addition, NIO also plans to use a combination of locally produced and externally sourced batteries in the long term. Tesla is also doing this.
Li said their own production batteries will be used for mass-produced vehicle models in the second half of 2024. The models will cost around 200,000 to 300,000 yuan ($30,000-$45,000). ).
Nio said battery costs would increase in the second quarter following the renewal of a deal with sole battery supplier CATL in April.
Nio expects deliveries of between 23,000 and 25,000 vehicles in the second quarter ending June 30. The number is down from 25,768 in the first quarter. The decline was more due to supply chain issues due to the Shanghai lockdown due to Covid-19