NIO Expands into Battery Manufacturing: Key Developments

Has NIO recently made any big moves? Shanghai NIO Co., Ltd. has undergone a business scope change, adding battery manufacturing, battery sales, and battery parts production.

Company registration details for Shanghai NIO Co., Ltd., including legal representative, registration date, and other business information. — NIO’s Shanghai company has added battery manufacturing business.

NIO has always been an important member among automakers that conduct their own battery research and development. As early as September 2021, NIO established a battery R&D team and launched the “ternary iron lithium” patent battery. However, at that time, it still relied on CATL for cell supply.

In 2022, NIO first built a R&D base in Shanghai and then set up a battery company in Anhui with a registered capital of 2 billion yuan. The battery company was led by NIO founder William Li, who stated, “It is a normal strategy for automakers to make batteries.”

In the past two years, NIO has continuously expanded its investment scale in the battery field. The 40GWh battery plant in Hefei is under construction. Shanghai, Anhui, and Hefei have formed a triangular layout of “R&D – process – production.” This system, which costs more than 1 billion yuan per year and is supported by an 800-person team, has first collaborated with SVOLT on the mass production of large-format cylindrical batteries and then completed the public test of semi-solid-state batteries (150kWh solid-liquid hybrid batteries).

Two men smiling and laughing inside a car, with cityscape visible through the windows. — Nio co-founder and CEO William Li tested the Nio ET7 sedan with the 150-kWh semi-solid battery on board

Why are automakers so keen on battery R&D in the end? The reason is simple. The cost of batteries accounts for a high proportion of the total vehicle cost, ranging from 40% to 60%. By developing their own batteries, they can reduce costs.

An illustration of an electric vehicle with a transparent chassis showing its battery and components, and a charging station connected to it. — New energy vehicle charging

Just like Tesla and BYD, they have greatly improved the range and energy density by relying on the CTC (cell-to-chassis) technology. However, this technology requires intervention from the cell design stage, which cannot be achieved by relying solely on external suppliers. NIO’s current layout in battery manufacturing may well be in preparation for the future use of CTC technology.

By 2032, it is estimated that nearly 20 million new energy vehicles in China will face battery warranty expiration issues. By getting ahead in battery manufacturing, NIO can not only better meet its own product’s battery needs but also secure a good position in the future battery repair and replacement market.