EV maker Nio signs partnership deal with Geely to promote battery swapping technology in a bid to ease drivers’ ‘range anxiety’

EV makers Nio and Zhejiang Geely Holding Group, to promote battery swapping technology in a bid to overcome inadequate charging infrastructure
Nio operates more than 2,100 battery-swapping stations across the mainland, which aim to ease EV drivers’ fear of batteries running out between charging stations

Electric & new energy vehicles

Daniel Renin Shanghai

Published: 5:30pm, 29 Nov 2023

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Electric vehicle (EV) builder Nio will team up with Zhejiang Geely Holding Group, China’s second-largest privately-owned carmaker, to promote battery swapping technology as the two leading EV makers try to overcome the problem of inadequate charging infrastructure in the world’s biggest EV market.

Geely, which has a nearly 6 per cent share of mainland China’s EV market, became the second Chinese automotive giant to adopt this technology, which was created to ease drivers’ range anxiety. Last week, state-owned Changan Automobile, one of the mainland’s four largest state-owned carmaking giants, formed a partnership with Nio to build cars equipped with the technology.

“Nio and Geely share a profound understanding of battery swapping and have been dedicated to the investment in the battery swapping technology and network for private cars and commercial vehicles with rich experience in swapping service and operations,” William Li, co-founder and CEO of Shanghai-based Nio, said in a statement. “This strategic partnership will further popularise battery swapping, bring quality and convenient battery swapping experience to more users, and contribute to the steady development of the smart EV industry.”

Nio’s battery-swapping stations allow owners of the carmaker’s vehicles to quickly exchange a spent battery pack for a fully charged one.

A Nio electric vehicle is seen at a Nio battery swap station on November 13, 2023 in Taicang, Jiangsu Province of China. Photo: Getty Images

The agreement was signed in Hangzhou, in eastern Zhejiang province, where Geely is headquartered, and under this the two companies will jointly create designs for swappable batteries, expand the network of swapping stations and improve operating capabilities. It is similar to the partnership agreement signed by Nio and Changan on November 21.

Currently, Nio operates more than 2,100 battery-swapping stations across the mainland, which aim to alleviate drivers’ fears of batteries running out between charging stations.

Nio cuts EV prices by US$4,200, ends battery-swapping services as sales fall

Most of Nio’s stations can automatically navigate a car into proper position, with the battery swap taking about three minutes. The company launched its first swapping station in Shenzhen in May 2018.

Geely, owner of car brands that include Volvo, Lotus, Zeekr and Lynk, delivered 346,464 EVs to mainland buyers in the first 10 months of 2023, accounting for 5.8 per cent of the national total. Its total vehicle sales, comprising EVs and petrol cars, jumped 13.4 per cent on year to 1.11 million units in that period. The company, controlled by billionaire Li Shufu, is the mainland’s fourth-largest carmaker, behind BYD, Faw-Volkswagen and Changan.

In comparison, Changan, based in southwest China’s Chongqing city, reported deliveries of 1.13 million units between January and October, up 12.4 per cent from a year ago.

Nio, which assembles premium EVs featuring autonomous driving technology and digital cockpit, could benefit from the new revenue stream if the battery swapping technology becomes widely accepted. The company reported deliveries of 16,074 units in October, well short of its record of 20,462 units in July.

“Changan and Geely are both powerful players in China’s automotive sector,” said Gao Shen, an independent analyst in Shanghai. “Nio has made substantial progress in promoting the swapping system after establishing relationships with the two giants.”

Nio, founded in 2014, has yet to report a profit and has embarked on a cost-cutting campaign. Last Friday, Ji Huaqiang, vice-president of manufacturing, logistics and operations, told a media briefing that Nio aims to reduce its workforce by a third by 2027 as it rapidly replaces them with robots.

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