Nio Power, the power unit of Nio, has received a significant strategic investment of RMB 1.5 billion ($207 million), marking its first external funding to support its ongoing infrastructure development efforts.
The investment, led by Wuhan Guangchuang Emerging Technology Venture Capital Fund Phase I, was announced by Nio on May 31. According to Nio, the funding will be utilized to advance research and development, manufacturing, and operational capabilities in key areas such as charging, battery swapping, energy storage, battery services, and the energy internet.
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In addition to enhancing its charging and swapping infrastructure network, the investment will also support Nio Power’s innovative initiatives in vehicle-to-grid (V2G) interaction, as stated by the company.
The specific valuation of Nio Power following this financing round, as well as the exact stake acquired by Wuhan Guangchuang, were not disclosed by Nio.
Established in May 2017 in Wuhan, Hubei province, Nio Power was previously a wholly-owned subsidiary of Nio Holding, with Shen Fei serving as its legal representative and vice president of Nio.
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Shen Fei expressed optimism about the funding’s impact, stating that it will provide a financial boost to Nio Power’s rapid growth, optimize its capital structure, and lay a solid foundation for its long-term, high-quality development.
Wuhan Guangchuang, a government-backed industry fund, aims to strengthen a leading company and accelerate the adoption of the battery swap model, as stated by the Wuhan government on its Weibo page.
Nio has been actively expanding its charging infrastructure, boasting 2,427 battery swap stations and 22,595 charging piles across China as of May 31. The company emphasized that its charging infrastructure is open to users from all automotive brands, with over 80% of the power serving non-Nio users.
