BEIJING, Nov 29 (Reuters) – Chinese automaker Nio (9866.HK) and Zhejiang Geely Holding Group said on Wednesday they have signed a strategic partnership agreement for battery replacement to cooperate on standards, technology and model development.
With this agreement, Geely Automobile (GEELY.UL), which operates a wide range of brands from Volvo to G-Car, becomes the second automaker to form a battery exchange partnership with Chinese electric car maker Nio.
Nio, aiming to cut costs, last week announced a partnership with Changan Automobile (000625.SZ).
Battery swapping allows drivers to quickly swap out a depleted pack for a fully charged pack rather than plugging the vehicle into a charging point.
Geely and Nio will adopt a “co-investment, co-construction, sharing and cooperation” model, the companies said.
The companies added that they aim to establish an efficient battery asset management mechanism, build an integrated battery swapping operation, and develop battery swappable vehicles that are compatible with each other’s battery swapping systems.
Nio has been aiming to improve profitability. Since U.S. automaker Tesla (TSLA.O) began a price war at the beginning of the year, the company has cut jobs and postponed long-term investments to improve efficiency and reduce costs in the face of increased competition. Ta.
Battery replacement could reduce the strain on the power grid during peak times when drivers charge, but industry analysts and executives expect it will only be possible if battery standardization increases. There is.
Nio plans to nearly double the total number of such stations in China this year, and is one of the few EV manufacturers betting on battery swapping as the primary power option for EVs.
Geely Automobile announced in 2021 that it aims to install 5,000 EV battery swapping stations around the world by 2025.
Geely Auto currently operates 300 stations and said it will continue building stations either independently or in collaboration with Nio.
Reporting by Beijing Newsroom and Brenda Goh.Editing: Jacqueline Wong and Jamie Freed
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