Geely to take 30% stake in NIO Power

NIO Inc. (9866.HK) has signed definitive agreements with a subsidiary of Zhejiang Geely Holding Group to combine parts of their battery-swapping and charging businesses. Under the transaction, the Geely subsidiary will acquire a 30.0% equity interest in NIO Power, the unit that operates NIO’s (9866.HK) battery-swap and charging network.

Consideration for the 30.0% stake consists of RMB 640 million in cash and the contribution of Geely’s battery-swapping operator, identified as Yiyi Internet Technology or Yiyi Power. This structure combines financial investment with operational assets within NIO Power.

The transaction implies a post-money valuation of about RMB 16 billion for NIO Power, equivalent to roughly $2.38–$2.4 billion. This valuation reflects both the cash injection and the transfer of Geely’s Yiyi battery-swapping business into NIO Power.

Following the deal, NIO China (Nio Holding Co., Ltd.) will retain a controlling interest of 63.6% in NIO Power. An existing investor, Wuhan Guangchuang Emerging Technology Phase I Venture Capital Fund Partnership, will hold the remaining approximately 6.4% equity interest.

As part of the broader cooperation, NIO China will subscribe for a 10.0% equity interest in Zhejiang Haohan Energy Technology Co., Ltd., which is Geely Holding’s charging-business unit. The agreements also envisage the transfer of certain charging assets in connection with this transaction framework.

These cross-shareholdings align NIO Power with Geely’s charging and swapping platforms, creating a more integrated network of battery-swapping and charging services under shared ownership.

The Geely subsidiary has been granted an option to invest an additional RMB 640 million in NIO Power. This option is exercisable within the earlier of two years after closing or the date on which NIO Power signs binding agreements for a new financing round.

If the option is exercised, Geely’s stake in NIO Power would increase to 34.0% before any post-closing adjustments. However, the equity interest is subject to operational performance milestones that can trigger adjustments.

Under these performance-based terms, Geely’s final stake may be reduced if the business underperforms, but the agreements specify that its holding cannot fall below 20.0%. This creates both upside potential via the option and a floor on Geely’s long-term participation.