NIO (NIO) Stock Gains 4% Following Major $2.4B Geely Partnership for Battery Swap Network

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NIO’s shares traded in the U.S. jumped 4% following the announcement of a strategic partnership with Geely.
The Chinese automotive giant will transfer ownership of its Yiyi battery swap business plus 640 million yuan in cash to acquire 30% of NIO Power.
NIO Power’s post-transaction valuation stands at approximately $2.4 billion (16 billion yuan).
NIO China maintains majority control with 63.6% ownership, while simultaneously acquiring 10% of Geely’s Haohan Energy charging business.
This positive development follows a challenging September for NIO stock, which declined 13%, marking its steepest monthly drop since November 2025.

Shares of NIO traded in American markets surged 4% during late Sunday trading. This uptick followed the Chinese electric vehicle manufacturer’s announcement of a significant transaction with established collaborator Geely Holding Group.

NIO Inc., NIO

Trading in Hong Kong also reflected investor optimism, with shares advancing 1.4% to reach HK$28.44 during Monday’s session. This outpaced the Hang Seng Index, which recorded a 0.5% gain during the same period.

The strategic agreement focuses on NIO Power, the automaker’s division dedicated to battery swapping infrastructure and charging solutions. Under the terms, Geely will contribute complete ownership of Yiyi Internet Technology, which operates commercial fleet battery swap services, alongside a cash injection of 640 million yuan.

This contribution secures Geely a 30% ownership position in NIO Power. Following the completion of this transaction, the business unit carries a valuation of roughly 16 billion yuan, equivalent to approximately $2.4 billion.

Ownership Structure and Future Options

NIO China will maintain majority ownership with a 63.6% stake in NIO Power upon finalization of the agreement. Current investor Wuhan Guangchuang will continue holding its existing 6.4% position.

The arrangement includes performance-based adjustments that could reduce Geely’s ownership to 20% should specific operational targets go unmet. Conversely, Geely has secured 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 right expires either 24 months following transaction closure or when NIO Power initiates its next capital raising round.

The partnership encompasses a reciprocal component as well. NIO China has committed to acquiring a 10% ownership stake in Geely’s charging infrastructure entity, Haohan Energy.

Haohan will deploy these proceeds to acquire specific charging infrastructure assets directly from NIO. This creates an interconnected arrangement, deepening the financial and operational ties between both organizations.

Building on an Established Collaboration

The relationship between these two automotive giants isn’t recent. NIO and Geely initially forged a battery swap collaboration in 2023, subsequently extending into charging network integration throughout 2024.

Both organizations are currently evaluating opportunities to extend battery swapping capabilities to additional Geely-affiliated vehicles, including commercial transportation fleets. These discussions remain in preliminary stages, with both parties acknowledging that execution specifics require further development.

Geely’s extensive automotive portfolio encompasses Zeekr, Volvo Cars, Polestar, and Lynk & Co. Securing backing from an organization of this magnitude represents significant validation for NIO’s battery swap infrastructure model, though it doesn’t guarantee automatic success.

The announcement’s timing is particularly noteworthy. 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 trajectory positions it as the fifth straight monthly decline and the company’s worst monthly performance since November 2025.

Beyond the financial transaction, NIO continues advancing its physical swap infrastructure. The company recently inaugurated a solar-powered battery exchange facility at Xingxingxia in Xinjiang province.

This installation operates completely independently from the electrical grid, relying exclusively on solar energy generation and battery storage systems. It provides essential services to motorists traveling highway routes through areas with minimal grid infrastructure.

Current data from September 23 shows NIO operating 4,109 battery swap stations throughout China. This network includes 1,060 strategically positioned highway locations, complemented by 5,301 charging stations distributed across the country.

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