More partners join Nio's battery swapping project

Nio has kindled industry-wide interest in battery swapping, with Chery and JAC joining the ranks of the Chinese startup's partners in the solution to electric vehicle owners' mileage anxiety.

The two companies, both headquartered in Anhui province, where Nio produces its vehicles, inked deals with the startup on Thursday, to explore cooperation in such aspects as drafting relevant standards, building and running battery-swapping networks.

JAC is even planning to co-develop models with Nio to differentiate itself from rivals in the increasingly competitive vehicle market.

On the same day, Nio teamed up with Anhui Province Energy Group Company and Anhui Transportation Holding Group to build a joint venture.

Among other things, the joint venture will build a network of up to 1,000 battery swapping stations.

Nio Chairman and CEO William Li said the moves will make Anhui province a place where EV owners can enjoy the best experience in terms of extending mileage.

The host of deals came after agreements with another two Chinese carmakers, Changan and Geely, in late 2023.

So far, battery swapping has been primarily something reserved for Nio car owners. The startup had 2,350 battery swapping stations by the end of 2023, with another 1,000 expected to be added to the network this year.

Analysts said the deals with those major carmakers and State-owned companies will see the technology gain momentum in coming years.

A report by Orient Securities projects that battery-swapping models are expected to account for around 30 percent of NEVs by 2025.

Outside China, Stellantis, which owns brands from Peugeot to Maserati, is considering the technology to win over potential customers concerned about range anxiety and lengthy charging times.

It will integrate the technology in Spain starting from 2024, according to its deal with San Francisco-based Ample in early December.

The initial program will involve a fleet of 100 Fiat 500e models within Stellantis' Free2move car-sharing service, the company said.