- Published on
NIO sells 30% of battery swap unit to Geely at more than $2 billion
- Authors
- Name
- DeepHorus
NIO sells 30% of battery-swap unit to Geely in $2.4 billion deal
NIO announced definitive agreements Sunday that will hand a Geely Holding subsidiary 30% of NIO Power, the company’s battery-swap and charging business. The deal values NIO Power at about RMB 16 billion ($2.4 billion) after money enters the unit. It is NIO’s largest outside partnership for the infrastructure behind its battery-as-a-service model and the first major automaker to take a direct equity stake. The transaction remains subject to regulatory approval.
Geely will contribute 100% of Yiyi Internet Technology (Chongqing), a commercial battery-swap operator, plus RMB 640 million ($94 million) in cash. After closing, NIO China is expected to own 63.6% of NIO Power, Geely 30%, and Wuhan Guangchuang 6.4%. The asset contribution means most of Geely’s purchase price is not cash, although the arrangement still adds capital and a scaled fleet-swapping business to the joint venture. At the stated valuation, Geely’s initial 30% position is worth about RMB 4.8 billion.
Geely’s stake could be adjusted against operating milestones after closing, with a floor of 20% if performance disappoints. It also receives an option to invest another RMB 640 million within two years, or earlier if NIO Power raises new financing, lifting its stake to 34% and reducing NIO’s to 60%. NIO’s disclosure implies that Yiyi is being valued at a little over RMB 4.1 billion, or about $610 million, after the cash payment. The clause links Geely’s final ownership to execution rather than locking in the full valuation immediately.
A parallel agreement sends NIO China into Geely’s charging business. NIO will subscribe for newly issued shares in Zhejiang Haohan Energy Technology and receive 10%, with Haohan then using the proceeds to acquire NIO charging assets. The amount was not disclosed, but the structure effectively exchanges part of NIO’s physical charging network for equity in Geely’s operation. Together, the deals align swapping and charging capabilities under complementary ownership arrangements.
NIO began promoting shared battery swapping in 2021, but Geely’s November 2023 strategic agreement initially stopped at joint standards and aspirations. The new contracts add assets, cash, and governance rights to that earlier partnership. Yiyi specializes in commercial fleet swapping, potentially giving NIO Power access to more vehicle types and customers beyond NIO passenger cars. NIO and Geely also have preliminary plans to extend swapping to consumer models from Geely, Zeekr, Lynk & Co, Volvo Cars, and Polestar, though those plans remain preliminary.
The network provides substantial strategic value. NIO said its system reached 3,790 stations after passing 100 million cumulative swaps in February, and the company is targeting 1,000 additional stations this year. It also recorded 175,976 swaps in a single day, demonstrating usage levels that few rival swapping networks can match. Swap access supports NIO’s Battery-as-a-Service pricing, including the ES9 flagship SUV launched at $54,000, but constructing and operating stations requires heavy capital. Sharing that burden with Geely could improve NIO’s cash efficiency while making the technology more useful across multiple brands.
Geely is also buying infrastructure that complements its broader EV portfolio, while NIO gains cash, a commercial operator, and a pathway to wider adoption. NIO is not selling because it is distressed: it reported 107,658 second-quarter 2026 deliveries, an 18.5% vehicle margin, a small non-GAAP profit, RMB 56.7 billion in cash, and a RMB 528 million GAAP loss. Earlier outside backing included RMB 1.5 billion from Wuhan Guangchuang in May 2024, while CATL said in March 2025 it was advancing an investment of up to RMB 2.5 billion. The structure is likely to be viewed as a validation of swapping’s commercial potential rather than a rescue, although regulatory clearance, milestone adjustments, and the undecided consumer-model rollout will determine how much value Geely ultimately captures. If integration proceeds, the alliance could help standardize swapping across a much larger vehicle ecosystem; if adoption stalls, the ownership protections and future investment option give both sides room to recalibrate.
