Chinese electric automaker Nio formally inked a strategic partnership with Zhejiang Geely Holding Group on Wednesday to expand the reach of its battery swapping network in the world’s largest auto market.
Partnership details
According to the press release, Nio and Geely will work together to establish new battery standards and battery swapping technologies.
They will also co-develop new swappable models and accelerate network expansion and operation. They will also cooperate on matters related to battery asset management.
This strategic partnership advances Geely’s position as the second brand to tap into Nio’s battery swapping technology following Changan’s announcement last week.
Geely and Nio will also employ a “co-investment, co-construction, shared, co-operative” model.
“As a leading company in the Chinese automotive market, Geely Holding’s rapid development in the new energy field is impressive. This strategic partnership will further popularize battery swapping, bring quality and convenient battery swapping experience to more users and contribute to the steady development of the smart EV industry. We will continue to advance the construction of battery swapping network for NIO users and improve the users’ experience, while collaborating with partners to launch the construction of shared battery swapping network.”
William LI, Founder, Chairman and CEO of NIO
What is battery swapping?
Battery swapping is basically the process of quickly replacing emptied battery packs with fully charged units.
It offers an extremely fast EV battery replenishing activity compared to the traditional charging process that requires several hours to reach full charge.
In addition, it substantially reduces stress on the electric grid at peak times.
“Through this strategic cooperation in battery swapping, the two parties will strengthen their cooperation in the battery swapping industry chain, accelerate the adoption of unified standards, expand the ecosystem for battery swapping and charging, support the low-carbon transformation and high-quality development of the automotive industry, and offer a better electric mobility experience for users.”
Eric LI, Founder and Chairman of Geely Holding
Nio’s battery swapping network expansion
Nio has been actively working to boost its profitability by expanding its battery swapping network.
It aims to increase the total number of its battery swapping stations in China by almost twofold in 2023, according to Reuters. As of now, Nio’s Power Swap Stations have already grown to over 2,100. It aims to launch another 1,000 stations in its home market this year.
Meanwhile, Geely currently operates 300 battery swapping stations in the country. Now, it expects to witness a substantial expansion with the new partnership it formed with Nio.
Nio’s growing partnerships with other Chinese automakers can significantly aid its efforts in expanding its battery swapping stations. In effect, more and more drivers can benefit from the innovative battery replenishing process without stressing over limited range. It can also boost the shift to e-mobility, given that the fast session solves one of the main barriers in the industry (time-consuming charging session).
