China’s NIO and Geely deepen stake sale commitment to EV battery-swap tech

SHANGHAI, 28 SEPTEMBER 2026 —

Nio and Geely Forge $2.4 Billion Battery Swap Alliance as China’s EV Push Accelerates

The deal shows the strategic importance of battery swapping—a technology that allows EV users to replace depleted battery packs in under three minutes—as China’s EV market continues its meteoric rise. With Nio Power’s network of over 4,000 swapping stations, the collaboration with Geely, controlled by billionaire Li Shufu, signals a push toward standardized swapping infrastructure and joint R&D for next-generation EV models.

Nio’s filing revealed that Geely Holding would contribute its wholly owned battery-swapping unit, Yiyi Internet Technology, in exchange for the 30% stake in Nio Power. The transaction includes a cash payment of 640 million yuan. The agreement follows a November 2023 pact between the two companies to expand swapping stations and enhance operational capabilities, reflecting broader industry efforts to address range anxiety and charging inefficiencies.

“This transaction reflects industry recognition of Nio’s battery swapping technologies, network, and operational capabilities,” Nio stated in its filing. The company added that it expects the partnership to “further promote the adoption of battery swapping, continuously enhance user experience, accelerate the growth of electric vehicle penetration, and unlock the long-term value of battery swapping.”

Battery swapping technology has gained traction in China as automakers race to meet growing consumer demand for faster, more convenient charging solutions. Nio’s entire vehicle lineup incorporates the technology, which complements traditional charging methods. The company’s automated swapping stations—most of which can guide vehicles into position autonomously—have become a key differentiator in a market where charging infrastructure remains a bottleneck.

The deal comes amid a surge in China’s EV adoption, which hit a record 65.2% market share in August, according to the China Passenger Car Association. Analysts attribute this shift partly to geopolitical tensions, as consumers increasingly favor electric vehicles over internal combustion engine cars. However, competition is intensifying as automakers like Geely develop their own fast-charging solutions.

Earlier this month, Geely Auto unveiled a technology enabling its Lynk and Zeekr models to charge from 10% to 70% battery capacity in under five minutes, potentially reducing reliance on swapping stations.

Industry observers note that the collaboration between Nio and Geely could set a precedent for unified standards in battery swapping, though the emergence of competing fast-charging technologies may test the long-term viability of the model. “An accelerated pace of electrification in China’s automotive industry has ushered in huge demand for fast-charging and swapping technologies,” said Eric Han, a senior manager at Shanghai consultancy Suolei.

“Nio Power is one of the beneficiaries since it has already built a vast network of swapping stations.”

The transaction also highlights Geely’s broader ambitions in the EV sector. Beyond its stake in Mercedes-Benz Group and ownership of Volvo Cars, Geely has been expanding its presence in China’s high-growth EV market through subsidiaries like Lynk & Co. and Zeekr. The partnership with Nio could further solidify Geely’s position as a key player in both battery swapping and fast-charging innovation.

As China’s EV market continues to evolve, the Nio-Geely alliance signals a moment in the race to dominate next-generation mobility solutions. With both companies committed to scaling their respective technologies, the outcome could shape not only China’s automotive future but also global standards for EV infrastructure. The next phase of development will likely focus on refining swapping protocols, expanding station networks, and addressing cost efficiencies—critical factors in ensuring widespread adoption.

Related: Li Shufu