TLDR
- Shares of NIO listed in the United States gained 4% following the announcement of a strategic partnership with Geely.
- The deal includes Geely transferring its Yiyi battery swap business plus 640 million yuan in cash for a 30% ownership in NIO Power.
- NIO Power’s post-money valuation stands at approximately $2.4 billion (16 billion yuan).
- NIO China retains majority control with 63.6% ownership while simultaneously acquiring 10% of Geely’s Haohan Energy division.
- This positive development follows a challenging September where NIO shares declined 13%, marking the weakest performance since November 2025.
The American depositary shares of NIO advanced 4% in after-hours trading late Sunday evening. This upward movement followed the electric vehicle manufacturer’s announcement of a strategic transaction with established collaborator Geely Holding Group.
Trading in Hong Kong also reflected investor optimism, with shares advancing 1.4% to reach HK$28.44 during Monday’s session. During the same period, the benchmark Hang Seng Index climbed 0.5%.
The transaction focuses on NIO Power, the division responsible for battery swapping infrastructure and charging operations. Under the agreement, Geely will contribute complete ownership of Yiyi Internet Technology, which operates battery swap services for commercial fleets, alongside 640 million yuan in cash.
This investment secures Geely a 30% equity position in NIO Power. The transaction establishes a post-money valuation of roughly 16 billion yuan, equivalent to approximately $2.4 billion.
Ownership Structure and Future Options
Following completion of the transaction, NIO China will maintain majority control with a 63.6% ownership stake in NIO Power. Current investor Wuhan Guangchuang will continue holding its existing 6.4% position.
The arrangement includes performance-based provisions that could reduce Geely’s ownership to 20% if specific operational targets aren’t achieved. Conversely, Geely has secured the right to inject an additional 640 million yuan at a later date.
Should Geely choose to exercise this secondary investment option, its stake would expand to 34%, correspondingly reducing NIO China’s position to 60%. This option remains valid for two years following deal closure or until NIO Power initiates another fundraising round, whichever comes first.
The partnership includes a reciprocal component as well. NIO China has committed to purchasing a 10% equity stake in Geely’s charging infrastructure business, Haohan Energy.
The capital from NIO’s investment will enable Haohan to acquire specific charging-related assets directly from NIO. This cross-investment structure effectively deepens the operational integration between both organizations.
Building on Years of Collaboration
The relationship between these companies extends back several years. NIO and Geely initially established their battery swap collaboration in 2023, subsequently expanding into charging network interoperability during 2024.
Both parties are currently exploring opportunities to extend battery swapping capabilities to additional Geely-affiliated vehicles, particularly focusing on commercial transportation fleets. These discussions remain in preliminary stages, with both organizations acknowledging that execution specifics require further development.
Geely’s automotive portfolio encompasses Zeekr, Volvo Cars, Polestar, and Lynk & Co. Securing support from such an extensive network provides meaningful validation for NIO’s swapping infrastructure, though it doesn’t guarantee automatic success.
The announcement’s timing carries particular significance. NIO’s U.S.-listed shares declined 2% during the previous week, extending a losing streak to five consecutive weeks.
September has brought a 13% decline for the stock. This trajectory positions it for a fifth straight monthly decrease and represents the steepest monthly decline since November 2025.
Beyond this strategic deal, NIO continues advancing its physical infrastructure footprint. The company recently inaugurated a solar-powered battery swap facility at Xingxingxia in Xinjiang province.
This installation operates completely independently from the electrical grid, relying exclusively on solar energy generation and battery storage systems. It provides service to motorists traveling along a highway corridor in an area with limited grid infrastructure.
According to data from September 23, NIO’s operational network included 4,109 battery swap stations throughout China. This total comprises 1,060 highway-located stations, complemented by 5,301 charging stations distributed nationwide.
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