CATL in talks to acquire Nio Power’s battery-swapping network

Leading Chinese battery manufacturer CATL is reportedly in discussions to acquire a controlling interest in Nio Power, the electric vehicle maker’s subsidiary responsible for its extensive battery-swapping network, according to sources familiar with the matter cited by Reuters.

This development follows CATL‘s announcement in March of a potential investment of up to 2.5 billion yuan (342 million USD) into the unit.

Neither CATL nor Nio has officially confirmed talks regarding a controlling stake. CATL declined to comment on the speculation, while Nio stated it is working ”with multiple investors, including CATL“ to jointly build battery swapping stations and deepen their strategic partnership on capital and business fronts to create the ”largest battery swapping network globally.“

Despite the lack of confirmation, the potential deal holds strategic logic for both companies. Nio, while experiencing significant revenue growth (65.73 billion yuan, or 9.04 billion USD in 2024, up 18.2% year-on-year), continues to face substantial financial pressure. The company reported a net loss of 22.66 billion yuan(3.11 billion USD) for 2024, an increase from the 21.15 billion yuan loss in 2023. Over the past five years (2020-2024), Nio’s cumulative losses have reached approximately 74.55 billion yuan(10.28 billion USD).

A major contributor to these losses is Nio‘s heavy investment in its signature battery-swapping infrastructure and significant R&D spending. Nio operates over 3,200 swap stations, primarily in China, allowing users to exchange depleted batteries for fully charged ones quickly.

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However, building and maintaining this network is capital-intensive, with station costs ranging from 1.5 million to 3 million yuan(207,725 USD to 415,450 USD) each, plus ongoing expenses for batteries, maintenance, and site leases.

Selling a controlling stake in Nio Power could provide Nio with a significant capital injection and reduce the ongoing financial burden associated with operating and expanding the network, potentially aiding its goal of achieving profitability in the fourth quarter of 2025.

For CATL, acquiring control of Nio Power would represent a massive acceleration of its own battery-swapping ambitions. CATL established its swapping subsidiary, EVOGO, in 2021 and has committed significant resources to building out its ”Chocolate Battery Swap Ecosystem.“

Chairman Robin Zeng has stated CATL aims for 1,000 swap stations by the end of 2025, 10,000 in the medium term, and eventually 30,000-40,000, predicting swapping will become a major charging method alongside home and public charging by 2030. Taking control of Nio’s existing network of over 3,200 stations would instantly make CATL the dominant player in the passenger car battery-swapping market, leapfrogging its own network construction targets.

The companies already collaborate, with Nio‘s upcoming Firefly brand models set to utilize CATL’s ”Chocolate“ battery swap standard and network, operating alongside Nio‘s existing system.

While the talks for a controlling stake remain unverified, the underlying financial pressures on Nio and the clear strategic benefits for CATL’s expansion plans lend plausibility to the reports of deepening ties that could reshape China‘s EV infrastructure landscape.