NIO (NIO) Stock Surges 4% on $2.4B Geely Battery Swap Partnership

Key Highlights

• NIO’s American depositary shares gained 4% in overnight trading following a strategic partnership announcement with Geely.
• Geely is acquiring a 30% ownership position in NIO Power by transferring its Yiyi battery swap business plus 640 million yuan in cash.
• NIO Power’s post-money valuation stands at approximately 16 billion yuan ($2.4 billion) following this transaction.
• NIO China maintains majority control with 63.6% ownership while simultaneously acquiring a 10% stake in Geely’s Haohan Energy division.
• This positive development follows a challenging September for NIO shares, which dropped 13%, representing their poorest performance since November 2025.

Shares of NIO traded in the United States advanced 4% during late Sunday overnight sessions. The rally followed the Chinese electric vehicle manufacturer’s announcement of a strategic agreement with established collaborator Geely Holding Group.

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NIO’s Hong Kong-listed shares similarly posted gains, rising 1.4% to reach HK$28.44 during Monday trading. The benchmark Hang Seng Index climbed 0.5% during the corresponding period.

The agreement focuses on NIO Power, the electric vehicle company’s battery exchange and charging infrastructure business. Under the terms, Geely will transfer complete ownership of Yiyi Internet Technology, which operates battery swap services for commercial fleets, alongside a cash payment of 640 million yuan.

This contribution secures Geely a 30% ownership stake in NIO Power. Based on the investment, the division carries a post-money valuation of roughly 16 billion yuan, equivalent to approximately $2.4 billion.

Ownership Structure and Future Options

Following completion of the transaction, NIO China will maintain majority control with a 63.6% ownership position in NIO Power. Current investor Wuhan Guangchuang preserves its existing 6.4% stake.

Geely’s ownership percentage includes performance-based adjustments, potentially decreasing to 20% if specific operational targets aren’t achieved. Additionally, Geely possesses the right to inject an additional 640 million yuan at a future date.

Should Geely activate this investment option, its ownership would expand to 34%, correspondingly reducing NIO China’s stake to 60%. This option expires either 24 months following deal closure or when NIO Power initiates its next funding round, whichever occurs first.

A complementary component accompanies this primary transaction. NIO China committed to acquiring a 10% ownership position in Haohan Energy, Geely’s charging infrastructure operation.

Haohan Energy will deploy these proceeds to acquire specific charging infrastructure assets from NIO. This reciprocal arrangement deepens the strategic alignment between both organizations across multiple business segments.

Building on an Established Collaboration

The partnership between these companies has developed over multiple years. NIO and Geely initially established their battery swap collaboration in 2023, subsequently extending cooperation to charging network integration throughout 2024.

Both organizations are currently evaluating opportunities to extend battery swapping capabilities to additional Geely-affiliated vehicle platforms, particularly within commercial mobility operations. These discussions remain in preliminary stages, with both parties acknowledging substantial implementation planning remains ahead.

Geely’s automotive portfolio encompasses Zeekr, Volvo Cars, Polestar, and Lynk & Co. Securing backing from such an extensive manufacturing ecosystem provides meaningful validation for NIO’s battery swap infrastructure approach, though it doesn’t guarantee future success independently.

The announcement arrives at a critical juncture. NIO’s U.S.-traded shares declined 2% during the previous week, extending a losing streak to five consecutive weeks.

September has proven particularly challenging, with shares down 13% for the month. This positions September as potentially the fifth straight monthly decline and the company’s weakest monthly performance since November 2025.

Beyond this strategic transaction, NIO continues expanding its battery swap infrastructure footprint. The company recently inaugurated a solar-powered battery exchange station in Xingxingxia, located in Xinjiang province.

This facility operates completely independently from the electrical grid, relying exclusively on solar energy generation combined with battery storage systems. It provides service to motorists traveling highway corridors in areas where traditional power infrastructure remains unavailable or unreliable.

NIO’s battery swap network reached 4,109 stations throughout China as of September 23. This total encompasses 1,060 highway-positioned stations, complemented by 5,301 charging stations distributed nationwide.