- Major Investment and Strategic Partnership
- Structural Changes and Government Investment
- Dominance in the Battery Swap Market
- Mirattery: Leasing Expansion and Equity Moves
The electric vehicle industry in China is undergoing strategic shifts that could reshape the landscape of the smart energy sector. Reports have revealed advanced negotiations between Chinese battery giant CATL and Nio Power, the battery swapping and energy division of Nio. This potential deal comes at a pivotal time, as companies aim to solidify their presence in the battery swap segment, reflecting ambitions for global leadership in electric mobility infrastructure.
Major Investment and Strategic Partnership
CATL, the world’s largest supplier of power batteries, proposed acquiring a controlling stake in Nio Power following its March 2025 announcement of an investment of up to 2.5 billion Chinese yuan ($342 million USD / AED 1.26 billion). The move is part of a broader partnership announced on March 18, which includes a joint initiative to build the world’s largest battery swap network and engage in capital cooperation.
According to Reuters, details regarding the exact size of the stake have not been disclosed. However, other reports suggest that Nio Power’s valuation dropped to around 10 billion yuan in March 2025 (AED 5.023 billion), indicating that CATL’s proposed investment could secure a 25% stake. The company has also expressed interest in acquiring additional shares from other stakeholders to increase its influence within Nio Power.
Structural Changes and Government Investment
Nio Power was founded in May 2017 in Wuhan, central China. It was initially fully owned by Nio and led by Vice President Shen Fei, who recently transitioned to lead Nio’s sub-brand “Onvo.” The division is now overseen by Nio’s CFO, Stanley Qu, who reports directly to founder and CEO William Li.
In May 2024, the Hubei provincial government injected 1.5 billion yuan (AED 753 million) into Nio Power in what marked the company’s first external investment. Despite the infusion, Nio retained a roughly 90% stake, valuing Nio Power at approximately 15 billion yuan (AED 7.5 billion) at the time. However, subsequent local reports indicate a drop in valuation to about 10 billion yuan (AED 5,021 billion), prompting CATL to act on a strategic opportunity.
Dominance in the Battery Swap Market
With this move, CATL aims to enhance its standing in the battery swapping sector, where Nio currently holds a leading position with 3,245 battery swap stations in China and 60 more overseas, according to CnEVPost data.
CATL entered the battery swap space in January 2022 and outlined an ambitious plan in December 2024 to standardize swappable battery design. It introduced two unified battery packs, branded Choco-SEB, under the designations 20# and 25#, a concept likened to China’s gasoline labels (e.g., 92#, 95#, and 98#). In April 2025, CATL announced a collaboration with oil giant Sinopec to build more than 500 battery swap stations within the year, with long-term plans to reach 10,000.
Mirattery: Leasing Expansion and Equity Moves
Beyond Nio Power, CATL also holds a notable stake in Mirattery, a joint venture established to manage Nio’s leased battery assets under its “Battery as a Service” (BaaS) model launched in August 2020. The venture was formed by four key players: CATL, Nio, Guotai Junan Securities, and Hubei Science & Technology Investment Group, each initially holding a 25% stake.
Following changes in shareholding structure, Nio has emerged as the largest stakeholder with a 19.4% share, while CATL and Hubei each now hold 10.68%. According to a March 2025 report by platform 36kr, CATL is considering further investments in Mirattery, potentially increasing its control over battery leasing operations without exceeding the proposed cap of 2.5 billion yuan (AED 1.2 billion).
As competition intensifies and energy infrastructure becomes a decisive factor in the electric vehicle market, these strategic developments suggest that leadership will be determined not just by who builds the best vehicles or batteries, but by who controls the smart energy systems that power them. In this arena, both CATL and Nio are positioning themselves as dominant forces.
