Chinese battery giant CATL (SHE: 300750) is reportedly in discussions to acquire a controlling stake in Nio Power, the power unit of Nio (NYSE: NIO). This news comes after CATL announced an investment of up to RMB 2.5 billion in Nio Power back in March. The potential deal was revealed by four sources familiar with the matter, as reported by Reuters.
Nio Power, which was valued at over RMB 10 billion in a 2024 funding round, has been a key player in the battery swap space. Nio and CATL previously partnered on March 18 to establish the world’s largest battery swap service network, with CATL committing to invest up to RMB 2.5 billion in Nio Power.
Founded in May 2017 in Wuhan, Hubei province, Nio Power was initially fully owned by Nio and led by Shen Fei, who recently assumed the role of president of Nio’s sub-brand Onvo. Nio CFO Stanley Qu also oversees Nio Power’s operations, reporting to Nio founder, chairman, and CEO William Li.
In May 2024, Nio Power received a strategic investment of RMB 1.5 billion from a Hubei government fund, marking its first external funding. By June 2024, Nio held a 90 percent equity stake in Nio Power post the external investment, valuing the unit at around RMB 15 billion. However, CATL’s recent investment has lowered Nio Power’s valuation to approximately RMB 10 billion.
CATL’s interest in acquiring a stake in Nio Power aligns with its broader strategy to expand its presence in the battery swap sector. In addition to its partnership with Nio, CATL announced plans to establish over 500 swap stations with Sinopec Group in 2025, with a long-term goal of reaching 10,000 stations.
CATL’s investment in Nio Power also reflects its commitment to the battery-as-a-service (BaaS) model, which Nio introduced in August 2020. Mirattery, a joint venture between CATL, Nio, Guotai Junan, and Hubei Science Technology Investment, manages the battery assets for rental under the BaaS program.
With CATL’s potential acquisition of a stake in Nio Power, the battery giant aims to strengthen its position in the battery swap market and solidify its partnership with Nio. This move underscores CATL’s strategic focus on expanding its presence in the rapidly growing electric vehicle ecosystem.
