Geely Takes 30% of NIO's Battery-Swap Business at a $2.4 Billion Valuation

NIO announced definitive agreements Sunday with subsidiaries of Zhejiang Geely Holding Group that hand the automaker a 30% stake in NIO Power — the unit running NIO's battery-swap stations and chargers — at a post-money valuation of about 16 billion yuan ($2.4 billion). The deal turns a two-year battery-swapping partnership into a capital tie-up and gives NIO's expensive energy business its biggest strategic investor yet.

A 30% stake, paid mostly in assets

Under the agreements, a Geely Holding subsidiary will contribute 100% of Yiyi Internet Technology (Chongqing) — a Geely unit that provides battery-swapping services for the commercial mobility market — plus 640 million yuan (about $95 million) in cash to subscribe for newly issued shares of NIO Energy Investment (Hubei), known as NIO Power, according to NIO's announcement. After closing, the Geely subsidiary would hold 30% of NIO Power, NIO Holding Co. — the NIO China subsidiary — would keep a controlling 63.6%, and the existing Wuhan Guangchuang venture fund would hold the remaining 6.4%. The transaction values NIO Power at about RMB16 billion post-money. Both transactions are subject to regulatory clearances and other customary closing conditions.

A stake that shrinks if the milestones slip

Geely's holding is tied to performance. NIO said the Geely subsidiary's equity interest is subject to post-closing adjustments tied to certain operational milestones, and could be reduced to no less than 20% in the event of underperformance — effectively putting part of the Yiyi business's price on an earn-out. Geely also received an option to invest another RMB640 million in cash, exercisable within the earlier of two years after closing or NIO Power entering binding agreements for a new financing round, which would lift its stake to 34% and reduce NIO China's to 60%, before any post-closing adjustment.

The trade runs in both directions

In a parallel transaction, NIO China agreed to subscribe for newly issued shares of Zhejiang Haohan Energy Technology, Geely's charging business, for a 10% stake. Haohan will use the proceeds to purchase certain charging assets from NIO — in practice, NIO is trading part of its charging network for equity in Geely's. NIO did not disclose the amount. The companies also said they have preliminary plans to bring battery swapping to consumer models from Geely-related entities and to commercial mobility businesses, but finalizing those plans is subject to further discussion.

A network that finally has a partner putting in assets

The deal converts a handshake into real capital. NIO and Geely signed a strategic battery-swapping partnership in November 2023 covering joint standards for private and commercial vehicles, but this is the first time Geely has put assets and cash behind it. NIO has spent years looking for someone to help carry the cost of its swap network: the first outside money into NIO Power came in May 2024, RMB1.5 billion led by the same Wuhan Guangchuang fund that will hold 6.4% after this deal, and in March 2025 NIO said CATL was advancing an investment capped at RMB2.5 billion. CATL does not appear in the ownership table NIO published Sunday. The valuation has barely moved: about RMB16 billion now, roughly where the 2024 raise implied even as the network grew — NIO is not selling growth at a premium here.

NIO is dealing from patience rather than desperation, at least on paper. It delivered 107,658 vehicles in the second quarter, posted an 18.5% vehicle margin and a small non-GAAP profit, and ended June with RMB56.7 billion in cash. It still lost RMB528 million on a GAAP basis.

U.S.-listed NIO shares jumped about 4% in overnight trading late Sunday, according to market reports — a breather after a rough stretch. The stock fell 2% last week, its fifth straight weekly decline, and is down about 13% in September, on track for its worst month since November 2025.

The transactions still need regulatory approval, NIO gave no closing date, and the milestones behind the 20% floor were not disclosed. The bigger open question is whether Geely's brands will actually ship NIO-compatible battery packs at volume — which would make NIO's network the default across a huge slice of China's EV market — or whether the 'preliminary plans' stay preliminary.