Chinese EV maker Nio and battery king CATL to join forces on swapping stations, technology

CATL, which is planning a US$5 billion Hong Kong share listing, will invest up to US$345.6 million in Nio

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EVs sit outside a Nio delivery center in Shanghai on March 23, 2023. Photo: Reuters

Published: 6:03pm, 18 Mar 2025Updated: 6:08pm, 18 Mar 2025

Chinese electric-vehicle (EV) manufacturer Nio and the world’s top EV battery maker Contemporary Amperex Technology (CATL) will join forces to expand the availability of battery-swap stations, which allow compatible cars to quickly trade spent batteries for charged ones rather than recharging.

CATL, which is planning a US$5 billion Hong Kong share listing, will invest up to 2.5 billion yuan (US$345.6 million) in Shanghai-based Nio under the partnership, which was signed on Monday at CATL’s headquarters in Ningde, in China’s southeastern Fujian province.

A statement said Nio would incorporate CATL’s Choco-swap technology into future car models sold under its Firefly brand, which targets middle-income consumers on the mainland. In addition, the companies’ networks of swap stations would operate together to deliver a smoother experience for users and further enhance the convenience of EVs, they said.

Nio, the primary advocate of swapping, has a network of 3,172 stations and has committed to fully covering 27 provincial-level administrative regions by the end of this year. CATL said last year it planned to build 1,000 of its Choco-swap stations by the end of this year. The swapping concept, under which users subscribe to battery service, can reduce the initial price of an EV, but it faces pressure as EV prices fall and battery technologies evolve to allow faster charging.

Nio and CATL’s partnership would also involve promoting national standards for swapping technology to enable cross-brand and cross-model compatibility, they said.

The two companies also said they will establish a comprehensive life-cycle loop that encompasses battery research and development, battery swap services, asset management, reuse, and material recycling, with an eye toward reducing costs and raising efficiency across the entire industry.