Nio Power, the power service segment of Nio Inc.
Wuhan Guangchuang Emerging Technology Venture Capital Fund Phase I led the investment.
The funds are expected to fuel research, manufacturing, and operations in charging, battery swapping, energy storage, battery services, and the energy internet.
Nio Inc. refrained from disclosing Nio Power's valuation in the financing round or the quantity of shares acquired by Wuhan Guangchuang.
Founded in May 2017, Nio Power was previously wholly owned by Nio Holding, with Shen Fei, NIO's vice president, serving as its legal representative.
The financing injects capital into Nio Power's rapid expansion, optimizing its capital structure and paving the way for long-term development, according to Shen, the report said.
Wuhan Guangchuang, a government-backed industry fund, aims to bolster leading companies and expedite the adoption of the battery swap model, as highlighted by the Wuhan government on its Weibo page.
As of May 31, NIO boasted 2,427 battery swap stations and 22,595 charging piles in China. It has the largest network of such facilities, according to Nio.
Nio's charging infrastructure is accessible to users across the industry, with over 80% of the power serving non-Nio brand users.
Nio reiterated its commitment to collaboration, highlighting Nio Power's existing partnerships with industry players such as Changan Automobile, Geely Holding, Anhui Jianghuai Automobile Group (JAC), Chery, Lotus, GAC Group, and China FAW Group, per CnEV Post. These agreements aim to foster a broader, standardized, and cohesive energy infrastructure network.
The investment in charging facilities positions NIO as one of the largest charging networks in China, with brands like IM Motors, Hyper, Deepal, SAIC-GM, Jiyue, and Geely already announcing access to the network, CnEV Post added.
Price Action: NIO shares are trading higher by 0.19% to $5.410 premarket at last check Friday.
