Li told investors that while battery research and development would continue in-house, production was to be outsourced.
Photo by Fan Jianlei
By LIU Jiaxin
According to Reuters on Wednesday, Nio is to sell off its battery unit in pursuit of profit and efficiency.
The division is expected to come as early as the end of the year. External investors will be sought, with the valuation yet to be determined.
In November, Nio announced a 10 percent reduction in its workforce and there is speculation of further layoffs.
The redundancy memo also revealed plans to cut costs, including cutting projects not expected to improve financial performance in the next three years.
CEO LI Bin emphasized during the recent third-quarter earnings call that the battery business will continue to be developed internally, but manufacturing will be outsourced.
The company remains optimistic about its battery-swapping business Nio Power and has entered into collaborations with Changan and Geely.
The power division might seek now independent financing, after over five years of operations and is seen as a sustainable and profitable business in the long term.
