Geely, NIO seal power pact

Geely Holding Group and NIO have agreed to invest in each other’s energy businesses as the two Chinese automakers work toward a shared network of electric vehicle charging and battery-swapping stations.

The agreement, announced on 28 September, will give Geely a 30 percent stake in NIO Power and NIO a 10 percent interest in Geely subsidiary Zhejiang Haohan Energy Technology once the transactions are completed.

Geely will contribute its entire ownership of Yiyi Internet Technology, also known as Yiyi Power, plus RMB 640 million in cash, equivalent to approximately P5.2 billion, to acquire its stake in NIO Power.

The arrangement builds on a battery-swapping partnership that the companies established in 2023. Their latest agreement extends that cooperation to station operations, investments and access to charging facilities.

Battery swapping allows an electric vehicle driver to exchange a depleted battery for a fully charged one at a dedicated station within minutes. This eliminates the need to wait for the battery to recharge, although vehicles must have compatible battery systems to use the service.

The first part of the agreement concerns commercial fleets. NIO Power will continue to improve its battery-swapping network to support Yiyi Power’s commercial mobility operations.

The companies also plan to develop common battery-swapping technologies and standards for passenger vehicles. Geely will develop models compatible with these systems, while NIO Power will provide the battery-swapping services.

Neither company has announced specific vehicle models or launch dates under the new agreement.

Meanwhile, NIO’s investment in Haohan Energy will allow the companies to connect their respective charging networks. The arrangement is expected to give customers access to more charging locations while improving the use of existing facilities.

Geely Holding Group chief executive Andy An Conghui said charging infrastructure should serve motorists regardless of which network operates the facilities.

He stressed the importance of cooperation among automakers as China’s electric vehicle industry continues to expand.

NIO founder, chairman and chief executive William Li said the partnership would allow both companies to make better use of their technology and existing businesses.

Li also emphasized the need for greater efficiency as Chinese EV manufacturers continue to develop new technologies.

Although the agreement covers China, Geely Motor Philippines has been expanding its electrified vehicle lineup locally.

Its current offerings include the EX2 and EX5 electric vehicles and the EX5 EM-i Super Hybrid.

However, the company has not announced plans to establish battery-swapping stations in the Philippines or introduce vehicles compatible with the system under the new partnership.

The arrangement could help Geely and NIO reduce the cost of expanding their respective networks while allowing more motorists to use shared facilities.

Much will depend on how the companies implement their common standards, particularly as more electric vehicles enter the Chinese market.