Nio Secures $2.2bn Investment From Abu Dhabi Fund
UAE investment vehicle CYVN takes 20% stake in Chinese group.
Electric Vehicle, Tesla rival Nio has secured a $2.2bn investment from Abu Dhabi-backed CYVN Holdings in a boost for the Chinese electric vehicle maker as Middle East groups and Beijing join forces in the clean tech transition. Nio has announced the details of the deal in a statement on its website.
The deal, expected to close in the final week of December, would take CYVN's shareholding to 20.1% of Nio's total issued and outstanding shares, following an investment of $1 billion in July.
The company, whose Nio-branded EVs compete with premium brands such as Tesla, Mercedes-Benz and BMW in China, has been developing two new brands for mass markets.
Nio is considering a spin-off of its battery production unit while continuing to develop technologies for key components on its own.
The deal, which follows CYVN’s more than $1bn injection in Nio in July, will give the UAE investment vehicle 20 percent of the Chinese group’s shares and is intended to ease worries among some analysts over the loss-making company’s finances.
The battery swapping system involves unscrewing the bottom of the car and replacing the battery through a hatch on the floor, which takes about five minutes.
Nio believes the technology, which could be sold to other groups, offers a way to overcome worries among consumers about EV charging times and long-term battery health.
The company is expanding among a clutch of Chinese auto groups in Europe, with plans to launch a cheaper brand in the region in 2025.
It has also entered a partnership with Geely and Chang’an in China to work together on battery swapping.
