Nio's battery-swap business is getting a major strategic partner. Geely Holding has agreed to acquire a 30% stake in Nio Energy, the EV maker's charging and swapping subsidiary, in a deal that values the unit at about 16 billion yuan (about $2.25 billion), according to an announcement by Nio on the Hong Kong Stock Exchange, as reported by Chinese outlet Huxiu.
Under the agreement, Geely will contribute its wholly owned YiYi Interconnect — a company focused on battery-swap services for commercial vehicles — plus 640 million yuan (about $90.1 million) in cash, in exchange for newly issued shares in Nio Energy. The deal also includes a cross-investment: Nio will take a 10% stake in Geely's Haohan Energy, which oversees charging operations for Zeekr, Lotus and other Geely passenger-car brands, operating 2,500 charging stations with over 12,000 charging guns across 232 cities in China.
Consolidation in the swap lane
The investment marks a significant step in the consolidation of China's battery-swap sector, which has evolved from a single-company endeavor to a collaborative effort among automakers and battery giants. Nio has been building its swap network since 2017, and in 2023 it opened the business to other automakers. Geely was among the first to sign a strategic cooperation agreement, covering battery standards, swap technology, network construction, and vehicle development.
According to Huxiu, the new deal will merge YiYi's commercial-vehicle swap operations into Nio Energy, while the two companies will jointly develop unified swap technology and standards for consumer vehicles. Geely will develop consumer-oriented swap-capable models, which Nio Energy will service. Nio founder and CEO Li Bin called the cooperation "a natural fit," noting that Nio's charging stations have been open to all brands from day one.
The transaction values Nio Energy at roughly 16 billion yuan (about $2.25 billion), making it a unicorn in its own right. Nio has previously raised funds for the subsidiary, including a 1.5 billion yuan (about $211 million) investment from Wuhan state-backed funds in 2024, and CATL has announced plans for a strategic investment of up to 2.5 billion yuan (about $352 million) in Nio Energy, following a broader cooperation agreement in March 2025.
Network expansion and competition
Nio Energy operates the largest battery-swap network in China, with 4,126 swap stations and 20,582 charging piles as of September 28, 2026, according to Nio's official website, providing over 125 million swap services. The company aims to build 10,000 swap stations by 2030. However, the cost is substantial: first-generation stations cost about 3 million yuan (about $423,000) each, second-generation about 2 million yuan (about $282,000), and third- and fourth-generation stations around 1.5 million yuan (about $211,000).
Nio's main rival in the swap space is CATL, which has built 2,000 "chocolate" swap stations as of June 30 and plans to exceed 3,000 by the end of 2026. CATL also recently acquired a 24.87% stake in Qiyuan Xindongli for 2.556 billion yuan (about $360 million), becoming its largest shareholder. The competition underscores the strategic importance of battery-swap infrastructure, which allows automakers to reduce reliance on external battery suppliers by standardizing and controlling their own swap ecosystems.
Other automakers are also entering the fray. Xiaomi has invested in a new energy vehicle swap facility company through its affiliate Hanxing Venture Capital, and Li Auto has increased its stake in battery maker Sunwoda Power with a 2.65 billion yuan (about $373 million) investment. Policy support is growing too: China's 2026 automobile standardization work plan includes advancing charging and swapping standards, including interoperability and chassis-swap protocols.
For Nio, the Geely deal strengthens its position as the leader in battery-swap infrastructure, but the race is far from over. As Li Bin has said, the swap business will become a significant revenue source in the long term, but it is still in an early investment phase.
