Chinese Nio Advances with 'Charging and Battery Swap'... Secures 286 Billion KRW Investment

Chinese electric vehicle manufacturer Nio (Weilai)'s affiliate specializing in charging and battery swapping has secured an investment of 1.5 billion yuan (approximately 286 billion KRW) from a state-owned fund.

According to Chinese economic media Caixin on the 2nd, Nio Energy Investment (Nio Energy) attracted an investment of 1.5 billion yuan from a state-owned fund in Wuhan that primarily invests in emerging technologies.

[Image source=Reuters Yonhap News]

Founded in 2017, Nio Energy is a wholly-owned subsidiary of Nio Holdings, located in Wuhan, Hubei Province. It mainly provides energy services such as charging and battery swapping. As of the end of last month, Nio operates 2,427 battery swapping stations and 22,595 charging stations nationwide, ranking it as the top company in the related industry.

The market views this fundraising by Nio Energy as a sign that local governments recognize its growth potential. Partners in the related fund include Wuhan Optics Valley Industrial Investment, Hubei Science and Technology Investment, and Wuhan Optics Valley Industrial Investment Fund Management.

Nio Energy explained that the funds raised through this strategic investment will be used to invest in research and development (R&D), manufacturing, operation, maintenance, and related infrastructure development in the fields of charging, battery swapping, energy storage, battery services, and the internet.

At the end of last year, Li Bin, Nio's founder and CEO, stated in the Q3 financial report that Nio Energy had reached its breakeven point, and the battery swapping business had started generating profits in some areas.

Chinese authorities are supporting related consumption by extending the new energy vehicle acquisition tax exemption, which was originally scheduled to end last year. In June of last year, the Ministry of Finance, the State Taxation Administration, and the Ministry of Industry and Information Technology announced that the acquisition tax exemption policy for new energy vehicles would be extended until the end of 2027.

This content was produced with the assistance of AI translation services.