(Yicai) Nov. 4 -- Weineng Battery Asset, an electric vehicle battery leasing joint venture of Chinese carmaker Nio and power battery giant Contemporary Amperex Technology, has raised CNY670 million (USD94 million) to fund research and development and grow its business.

Nio and CATL led Weineng’s latest fundraiser, which was also supported by two new state-owned investors -- one from Haining, Zhejiang province and the other from Chengmai, Hainan province --  the Wuhan-based company announced yesterday.

Set up in 2020 to manage the full lifecycle of power batteries and push forward China’s EV battery swap ecosystem, Weineng said the proceeds of the raise will provide financial stability and a supportive environment for its long-term growth.

The JV manages more than 30 gigawatt hours of operating battery assets and serves more than 400,000 users, it added.

Nio, established in 2014, was one of the first Chinese EV makers to try the battery swap model, allowing customers to rent power batteries and thereby buy vehicles at lower prices. The company has since grown into China’s largest operator of battery swap stations, with 3,553 swap stations and 4,776 charging piles nationwide, according to its website.

In March, Nio and CATL announced an agreement to deepen cooperation in battery swapping, with CATL pledging to invest as much as CNY2.5 billion (USD340 million) in Nio subsidiary Nio Energy Investment. Per the accord, they aim to create a battery swapping network that can serve all EV brands, expanding the ecosystem beyond Nio’s vehicles.

Editor: Tom Litting