by Chen Xiaotong

Nio has partnered with CATL, the world’s largest battery maker, to accelerate the rollout of battery-swapping services and deepen capital ties, as China’s EV sector pushes for broader adoption of the technology.

The two firms signed the strategic cooperation agreement on March 17 in Ningde, Fujian province, aiming to establish the world’s largest and most advanced battery-swapping network for passenger vehicles. Nio founder and CEO Bin Li and CATL chairman and CEO Yuqun Zeng attended the signing ceremony.

Following the announcement, shares of Nio surged more than 15 per cent in Hong Kong trading.

As part of the agreement, CATL will invest up to 2.5 billion yuan (US$350 million) in Nio’s energy subsidiary, strengthening their collaboration. The two companies plan to standardise battery-swapping technology, expand network coverage, and integrate their business operations.

Nio will incorporate CATL’s “Choco-SEB” (swappable electric block) technology into future models of its Firefly sub-brand, while both firms will work to establish national standards to ensure battery compatibility across brands and models.

The partnership will also focus on building a full-cycle battery ecosystem that covers research and development, swapping services, asset management, second-life applications, and material recycling.

Nio and CATL have an existing relationship, having signed a framework agreement in March 2024 to co-develop long-life batteries.

Nio currently operates 3,172 battery-swapping stations across China, more than any other automaker, and has signed partnerships with Changan, Geely, Chery, JAC, GAC, FAW, and Lotus to expand its swapping infrastructure.

Meanwhile, CATL is stepping up its own battery-swapping business, having already partnered with Changan, GAC, BAIC, Wuling, and FAW. The battery giant aims to build 1,000 swapping stations by the end of the year.