Nio, CATL Form Sales, Service JV That Offers Battery Rentals
Zhang Yushuo
DATE:  Aug 20 2020
/ SOURCE:  Yicai
Nio, CATL Form Sales, Service JV That Offers Battery Rentals Nio, CATL Form Sales, Service JV That Offers Battery Rentals

(Yicai Global) Aug. 20 -- Chinese new energy startup NIO Anhui Holding and the world’s largest power battery maker, Ningde, Fujian province-based Contemporary Amperex Technology, and two other firms recently set up a battery sales and services joint venture.

Founded on Aug. 18, Wuhan Weineng Battery Asset Management has CNY800 million (USD116 million) in registered capital, with each shareholder investing CNY200 million, Li Bin, chairman of NIO, told a press conference today. Guotai Junan Financial Products, a subsidiary of Guotai Junan Securities, and state-backed Hubei Science Technology Investment Group are the other partners in the JV, with no information forthcoming on the four parties’ respective stake.

The Wuhan-based startup will purchase NIO’s battery packs. Apart from battery charging and swapping services and sales, it will also provide battery rental, maintenance and recycling services.

The startup is an open company and is willing to cooperate with other auto brands. Discussions are currently ongoing with new shareholders, Li revealed.

Users who purchase NIO cars by renting batteries from the startup, will see the price of the car reduced by CNY70,000 (USD10,115), and pay a monthly service fee of CNY980 with a 70kWh battery pack.

Li noted that the launch of the startup will not have much of an impact on NIO’s sales in the short term, since customers will need time to accept the new purchase model.

Regarding related transactions between NIO and the startup, he said that NIO would gradually reduce its shareholding in the startup, and the related transactions would not significantly affect NIO’s financial performance.

Editor: Peter Thomas

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Keywords:   Nio,CATL,battery