Geely Agrees to Take 30% Stake in Nio Power

Nio has agreed to sell a 30% stake in its battery-swapping and charging unit, Nio Power, to a subsidiary of Geely, in a transaction that values the business at about 16 billion yuan. The agreement remains conditional and has not yet been completed. Under the terms announced by Nio, the Geely subsidiary will contribute its Yiyi commercial battery-swapping business and 640 million yuan in cash in exchange for the stake. Nio described the arrangements as definitive agreements. Its filing put Nio Power’s post-investment valuation at approximately 16 billion yuan, or about $2.4 billion. Nio said a subsidiary of its own will retain control of Nio Power. Reports detailing the ownership breakdown put Nio’s post-transaction stake at 63.6%, with an existing investor holding 6.4%. Those holdings, like the proposed Geely stake, would apply after the transaction closes. The companies have also discussed possible adoption of battery-swapping technology in Geely-related consumer vehicles and commercial mobility businesses. Nio has characterized those plans as preliminary, with implementation details still subject to further discussion.