Nio, Changan Auto Ink Deal On EV Battery Swapping Technology: Report

Electric vehicle (EV) company Nio Inc NIO is collaborating with Chongqing Changan Automobile Co. to develop and enhance battery swapping technology.
This partnership will encompass various domains including vehicle ownership, battery technologies, maintenance services, and financing solutions for swappable EV batteries.

Changan Auto chairman Zhu Huarong indicated that the partnership might also extend to vehicle development, per Bloomberg.

The deal aims to offset the high cost of EV batteries and the concerns around charging infrastructure accessibility for potential EV buyers. Battery swapping technology is pivotal in addressing the charging challenges faced by EV users. It involves replacing a depleted battery with a fully charged one in a matter of minutes through automated systems in advanced swapping facilities.

Nio launched its “battery-as-a-service” program in 2020, allowing customers to purchase a Nio car without the battery, thereby reducing upfront costs, and pay a rental fee for the battery instead.

Nio aimed to establish 1,000 battery swapping stations by the end of the year, exceeding its initial target of 400 stations.Currently, the company operates over 2,000 swap stations across China and is looking to expand this service into European markets.

Despite its initiatives, Nio has faced setbacks in meeting its sales targets and continues to operate at a loss. In the first ten months of the year, the company delivered around 126,067 vehicles, falling short of its 250,000 annual target.

In response, Nio’s CEO William Li announced a 10% reduction in staff and potential spin-offs of non-core businesses to curtail costs and boost efficiency.

Price Action: NIO shares are atrding lower by 1.03% at $7.72 in premarket on the last check Tuesday.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.