CATL ‘In Talks’ For Controlling Stake In Nio’s Power Unit

Chinese battery maker CATL is in talks to buy a controlling stake in the power unit of EV maker Nio, which operates more than 3,000 battery-swapping stations in China, Reuters reported.

The potential deal comes as Nio struggles amidst cut-throat competition in its domestic market that saw it report an $826.5 million (£650m) loss for the fourth quarter of 2024, even as it increased vehicle deliveries by 45 percent year-on-year.

CATL’s proposal followed an investment in Nio Power announced in March for up to 2.5bn yuan ($342m, £270m), the report said.

Battery-swap network

The report said its sources did not indicate how much CATL was offering, but one said Nio Power had been valued at more than 10bn yuan in a 2024 fundraising round.

Nio did not comment on the deal but said in an emailed statement that it was promoting joint construction of battery-swapping stations with “multiple investors, including CATL”.

“Nio and CATL will deepen collaboration on capital and business and further consolidate the strategic partnership to jointly build the largest battery swapping network globally,” Nio said.

CATL has been increasing its investments in battery-swapping infrastructure, which is designed to ease range concerns by allowing depleted batteries to be quickly replaced with charged ones.

CATL, which is the world’s largest maker of EV batteries, said in December it plans to build 1,000 battery-swapping stations this year with plans to ultimately build 30,000 swap stations in China.

Competition

Last week it announced a deal with state-owned oil company Sinopec to build 10,000 battery-swap stations, with at least 500 to be built this year.

The firm said it has worked with carmakers to develop 10 new EV models using two new swappable battery packs.

Nio’s network of some 3,240 battery-swap stations is mostly in China, but investments in the network have dragged on its profitability.

The company’s Hong Kong-traded shares have declined about 28 percent this year amidst profitability concerns and intense competition with domestic EV rivals such as BYD.