Geely is taking a 30% stake in NIO’s battery-swapping and charging unit through a deal that values NIO Power at about RMB16 billion ($2.37 billion), but only RMB640 million ($94.8 million) of the consideration is cash.
Under definitive agreements announced September 28, a Geely subsidiary will contribute its entire ownership of Yiyi Power, its commercial battery-swapping business, plus RMB640 million in cash in exchange for newly issued shares in NIO Power.
The distinction matters for investors looking at what the transaction means for NIO’s cash needs. Geely is not paying NIO RMB4.8 billion for an existing 30% stake. NIO Power is issuing new equity, and most of the consideration comes in the form of Yiyi Power rather than cash.
At the stated RMB16 billion post-money valuation, 30% of NIO Power corresponds to roughly RMB4.8 billion. With RMB640 million contributed in cash, the bulk of that value is represented by Geely’s Yiyi Power interest.
NIO’s U.S.-listed shares closed Monday at $3.595, up 0.42%, after opening at $3.64. FinanceFeeds has previously tracked NIO’s share-price pressure after the ADR fell below $5, making the valuation now attached to its infrastructure business particularly relevant for stockholders.
NIO Keeps Control of NIO Power
After closing, NIO China will retain a controlling 63.6% stake in NIO Power. Geely will own 30%, while existing investor Wuhan Guangchuang Emerging Technology Phase I Venture Capital Fund will hold the remaining 6.4%.
Geely’s 30% is not necessarily permanent.
The agreements tie part of its ownership to operational milestones. If those targets are missed after closing, Geely’s stake can be reduced, although it cannot fall below 20%.
Geely also receives an option to invest another RMB640 million in cash. The option can be exercised within two years of closing or before NIO Power signs binding documents for another financing round, whichever comes first.
If exercised without any milestone adjustment, Geely’s ownership would rise to 34%, while NIO China’s controlling stake would decline to 60%.
The transaction still requires regulatory clearances and other customary closing conditions.
Geely Is Contributing Its Own Battery-Swap Business
Yiyi Power operates battery-swapping services for commercial mobility. Once the transaction closes, that business will be integrated into NIO Power, giving the combined operation exposure to both NIO’s passenger-car network and Geely’s commercial swapping operations.
The companies also plan to jointly develop battery-swapping technologies and standards for consumer vehicles. Geely plans to develop consumer models capable of using battery swapping, while NIO Power would provide the swapping service.
NIO founder and CEO William Li framed the partnership as a way to reduce duplicated infrastructure spending and improve efficiency across China’s EV industry rather than requiring each manufacturer to build a fully independent network.
That network is already a substantial investment for NIO. The company said it had invested more than RMB20 billion in charging and battery-swapping technology and infrastructure as of September 27.
NIO currently operates 4,126 battery-swap stations and 5,307 charging stations in China. NIO Power is targeting 10,000 swap stations by 2030, when it expects annual electricity demand across the network to exceed 10 billion kWh.
The Charging Deal Runs in the Other Direction
The companies are also exchanging exposure to their charging businesses.
NIO China has agreed to subscribe for newly issued shares representing 10% of Geely subsidiary Zhejiang Haohan Energy Technology. Haohan Energy will then use the cash consideration to purchase certain charging assets from NIO.
The companies have not disclosed how much NIO will invest in Haohan Energy or the value of the charging assets Haohan will acquire.
That means the announced terms do not yet allow investors to calculate the transaction’s overall net cash benefit to NIO or precisely how much it changes the company’s future cash burn.
What is disclosed is narrower: NIO Power receives RMB640 million of fresh cash alongside Geely’s battery-swap assets, NIO retains control of the business, and a portion of NIO’s charging infrastructure will move into a Geely-controlled company in which NIO will hold 10%.
The structure therefore puts an external RMB16 billion valuation on NIO Power while bringing another automaker directly into the ownership of a network NIO has spent more than RMB20 billion building. Whether that ultimately reduces NIO’s infrastructure spending materially will depend on how the combined network is operated and expanded after the transactions close.
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