E-mobility: Geely buys 30 percent of Nio's battery swapping division

Geely has announced its intention to acquire a 30% stake in Nio's battery-swapping division, a move that will grant the Chinese automaker access to China's largest network of battery-swapping stations. The deal is valued at approximately $2.4 billion. In addition to the stake, Geely is paying $640 million in cash for the acquisition, according to Nio's statement on Monday.

The partnership also includes an agreement for Geely to take over Nio's battery-swapping technology for both passenger cars and commercial vehicles. This collaboration will provide Nio with fresh capital and the opportunity to better utilize its costly charging station network, making it available to Geely vehicles as well. On the other hand, Geely will benefit from leveraging Nio's established technology and infrastructure to expand its own services for its models without having to build a competing system from scratch.

According to Leonid Mironov, a portfolio manager at Gavekal Capital, this is a significant development for Nio. The company needs capital and a stronger utilization of its network. Geely, on the other hand, is finding a more effective way to build an infrastructure, as its own Yiyi network has struggled. Both parties agree that this is a "win-win" situation. Furthermore, consumers are also likely to benefit as the industry moves towards a national standard for battery swapping.