NIO Inc.(NYSE:NIO) shares are trading higher in the premarket session on Tuesday.
NIO and Contemporary Amperex Technology Co., Ltd. (CATL) have joined forces to enhance the development of the new energy vehicle sector.
On Monday, the companies announced a strategic partnership to establish a comprehensive battery swapping network for passenger vehicles, optimize industry standards, and provide efficient recharging solutions.
William Li, founder and CEO of NIO, and Dr. Robin Zeng, chairman and CEO of CATL, were both present at the signing ceremony, marking the beginning of this major strategic venture.
NIO has established a vast network of charging and battery swapping stations across China, surpassing 3,000 Power Swap Stations.
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The company aims to expand this network considerably by 2025, reaching additional cities and county-level areas.
In March 2024, NIO and CATL inked a framework agreement to promote innovation in the R&D of long-life batteries jointly.
“The strategic cooperation between NIO and CATL marks a pivotal moment, propelling battery swapping into a brand-new phase,” said Li.
CATL’s investment of up to RMB 2.5 billion (~$346 million) in NIO Power will strengthen this strategic partnership. CATL will assist NIO in enhancing its battery-swapping network. Additionally, they will collaborate to establish national standards for battery-swapping technology in China, which will improve compatibility among various brands.
“Leveraging our Choco-Swap and the parallel operations of both CATL’s and NIO’s networks, we are able to build a smart power network that caters to a wide range of needs across multiple levels and dimensions. This will enable every battery to deliver greater value throughout its lifecycle, and allow us to provide global users with safer, more efficient, and more sustainable electric mobility solutions,” said Zeng.
NIO will report its fourth quarter results on Friday, March 21, 2025, before the open of the U.S. markets.
Price Action: NIO shares traded higher by 5.77% at $5.32 in premarket at last check Tuesday.
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