The publicly traded Chinese electric vehicle manufacturer NIO’s subsidiary, Nio Power, has obtained $207 million in strategic funding to support the expansion of its network of charging and battery-swapping stations.
According to a statement from Nio Power, the state-owned investment company Wuhan Optics Valley Industrial Investment of the city provided the fresh funding. Nio Power is headquartered in Wuhan.
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To support Wuhan’s technology environment, Wuhan Optics Valley Industrial Investment, which reported having over $5.5 billion in assets under management by the end of 2022, is engaged in the creation of industrial and research parks, finance, and startup incubation.
According to the parent, this strategic funding will enable Nio Power to make investments in energy storage as well as in the production, operations, and maintenance of its mobile Internet-based power solutions and services that are powered by EV charging and battery swapping stations.
With the additional funding, Nio Power intends to develop its already-largest-in-the-country network of EV charging and battery swapping infrastructures.
Nio Power, which was established in 2017, claimed to have 22,595 charging stations and 2,427 battery-swapping stations in China. The company claims that over 80% of its power plants service EV vehicles sold under names other than NIO.
With a cooperation announced just days ago, IM Motors, the luxury EV brand supported by Alibaba Group and the Chinese state-owned carmaker SAIC Motor Corp, became the latest member of NIO’s EV power ecosystem. Nio Power also provides services to other Chinese EV manufacturers like Changan Automobile and Chery Automobile, as well as the Geely Holding Group, which owns Zeekr, Volvo, and Lotus EVs.
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This fundraising announcement coincides with NIO’s scheduled first-quarter earnings release later this week. Notable owners of the company include BlackRock, Tencent Holdings, and Abu Dhabi’s CYVN Investments.
NIO’s full-year revenues in 2023 increased 12.9% over the previous year to surpass $7.8 billion, while profitability is still a major concern. Its financial records show that its net loss for 2023 was over $2.9 billion, an increase of 43.5% YoY.
NIO and its Chinese competitors, Xpeng and Li Auto, recorded impressive sales results in the first five months of the year, as EV sales continue to rebound. Between January and May, NIO delivered 66,217 units, a 51% YoY increase.
About Nio Power
NIO pioneered and leads the premium smart electric vehicle industry. NIO was founded in November 2014 to promote joy. Starting with smart electric vehicles, NIO wants to develop a community to share joy and grow with people.
