Up-and-coming Chinese language EV maker NIO is partnering with Geely, the corporate behind Volvo, Polestar, and several other different manufacturers for EV battery swapping.

Volvo proprietor faucets NIO for EV battery swapping

NIO and Geely will collaborate on EV battery requirements, new swapping tech, and community enlargement. They can even deal with “swappable mannequin growth” and battery administration.

Battery swapping might help EV drivers get again on the street rapidly by changing a depleted pack with a totally charged one.

NIO says the method could be achieved in as little as 3 minutes in comparison with quick charging, which may take wherever from quarter-hour to an hour.

In keeping with the press launch Wednesday, Geely and NIO will work by a “co-investment, co-construction, shared, co-operative” mannequin.

The plans embrace growing two battery-swapping requirements and accelerating the tech for a handy, protected expertise. Each firms will develop EVs appropriate with one another’s battery swap techniques.

Geely has round 300 stations up and working and can proceed to develop its community. The corporate mentioned in 2021, it aimed to ascertain 5,000 swap stations by 2025.

“This strategic partnership will additional popularize battery swapping, carry high quality and handy battery swapping expertise to extra customers and contribute to the regular growth of the sensible EV business,” mentioned William Li, NIO’s CEO.

NIO expands battery swapping to enhance earnings

Geely is the second firm to accomplice with NIO. Final week, NIO revealed a partnership with Changan Auto to develop the community.

The information comes as NIO seems to develop its model and enhance profitability. NIO mentioned it will trim employees by 10% earlier this month amid “fierce competitors.”

NIO and others within the Chinese language EV market are feeling the strain after leaders like Tesla and BYD drastically slashed costs this yr.

In June, NIO reduce costs by $4,200 (30,000 yuan) to maintain up. Nevertheless, the EV maker is going through falling margins and earnings amid stronger competitors. NIO’s losses reached $835M in Q2, up 199% from final yr.

After a $1B convertible debt providing in Sept, NIO mentioned it will use the capital to “additional strengthen its steadiness sheet.” On the finish of June, NIO had round $1.9B in money and equivalents.

You’ll be able to be taught extra about NIO’s new battery swap tech within the video beneath.

Electrek’s Take

Regardless of the struggles, NIO continues to develop its model. NIO is among the solely main gamers within the battery swap area, which may show to be a serious benefit going ahead.

Much like how Tesla was a primary mover within the US with its Supercharger community, NIO is doing the identical with battery swapping. As of final week, NIO has constructed over 2,100 energy swap stations globally.

With Volvo and Polestar’s Geely becoming a member of in, we may see others seeking to be a part of NIO’s community. We’ll preserve you posted on the most recent.