Geely to acquire 30% of competitor Nio's battery swapping unit

NIO Group and Geely Holding have agreed to a strategic transaction involving their energy businesses. Geely will inject its battery swapping asset, Yiyi Internet, into NIO Energy in exchange for a 30% stake, valued at 16 billion yuan. NIO will take a 10% stake in Geely's charging business, Haohan Energy. The deal includes performance-linked conditions and an option for Geely to increase its stake. NIO's Hong Kong stock rose 3.21% on the news.

NIO and Geely Holding Group have expanded their partnership to include EV charging, battery swapping, and technology sharing. Geely will invest $90M for a 30% stake in NIO Power, while NIO will take a 10% stake in Geely's Haohan Energy. Both companies aim to connect their charging networks and develop unified standards, potentially increasing access and efficiency for EV drivers in China. NIO operates 9,433 stations, and Geely plans to expand its network to 22,000 stations by 2027.

Geely Holding Group will acquire a 30% stake in Nio Power, valuing the energy arm at 16 billion yuan ($2.37 billion). Geely transfers its battery swap unit and 640 million yuan in cash. Nio China retains 63.6% control. Geely has an option to invest an additional 640 million yuan, increasing its stake to 34%. The deal includes cross-investment in charging networks, aiming to integrate operations in China.

Geely acquires 30% of NIO's battery-swapping unit for $2.4B, integrating operations and paying $95M cash. NIO's P/S ratio is 0.54, below historical and industry norms, reflecting market skepticism. GuruFocus gives NIO a GF Score of 65, noting growth strengths but profitability and valuation weaknesses. Institutional investors show mixed sentiment.

NIO stock rose 1.4% to HK$28.44 after announcing a strategic deal with Geely's subsidiaries. Geely will invest RMB640 million and transfer Yiyi Internet Technology for a 30% stake in NIO Power, valued at RMB16 billion. NIO will retain 63.6% control of NIO Power and acquire a 10% stake in Geely's Haohan Energy. The partnership validates NIO's battery-swapping model.

Geely will acquire a 30% stake in Nio's battery-swapping unit, Nio Power, for 640 million yuan. The deal includes Geely's Yiyi Power division and cash. Nio will take a 10% stake in Geely's Haohan Power. Both aim to standardize battery-swapping tech and build 10,000 stations by 2030.