CATL Eyes Nio Power Stake in Strategic Move

Chinese battery manufacturer CATL is reportedly in discussions to acquire a controlling stake in Nio Power, a subsidiary of electric vehicle maker Nio, which operates over 3,000 battery-swapping stations in China. This move follows CATL's announcement of a potential investment of up to 2.5 billion yuan in Nio Power, as part of a strategic partnership to construct the world's largest battery-swapping network. While exact details of the proposed deal remain undisclosed, Nio Power was valued at over 10 billion yuan during a 2024 fundraising round. Both companies are focusing on collaboration to enhance their battery-swapping infrastructure, with CATL aiming to diversify its operations beyond battery manufacturing. This acquisition is seen as a strategic opportunity for Nio to alleviate its financial pressures, attributed to its heavy investments in the battery-swapping network and R&D expenses. CATL's initiative aligns with its goal of replacing a third of China's gas stations with battery-swapping facilities, supported by a recent partnership with Sinopec.