British supercar icon McLaren is accelerating toward an electrified future, backed by deep-pocketed investors from the United Arab Emirates and a new partnership with Chinese electric vehicle (EV) pioneer NIO. In a bold shift that underscores the rapidly changing dynamics of the global automotive industry, McLaren is set to benefit from cutting-edge battery technology developed by NIO, as it prepares to enter the electric SUV segment.
This new collaboration stems from a shared investor: CYVN Holdings, a sovereign wealth fund based in Abu Dhabi. CYVN became the largest shareholder in NIO after investing $3.3 billion in 2023, acquiring a 20.1% stake. Then, in October 2024, CYVN took a transformative step by acquiring 100% of McLaren’s automotive business from Bahrain’s Mumtalakat fund. This strategic consolidation laid the groundwork for a deeper alliance between the Chinese EV tech firm and the British luxury automaker.
According to Chinese media outlet Yiou, NIO will develop and supply battery packs specifically for McLaren’s upcoming hybrid models. These batteries will be built using NIO’s in-house developed 4680 large cylindrical cells—technology that closely mirrors Tesla’s high-energy-density format. A 10 kWh battery pack tailored for hybrid performance is currently under development, with small-scale production expected to begin next year. A prototype battery pack is scheduled to be delivered to McLaren by next month, indicating a rapid development cycle.
This collaboration reflects a broader strategic alignment orchestrated by CYVN. In early 2024, NIO signed a technology licensing agreement with Forseven, another CYVN-backed EV startup based in the UK. Forseven is also reportedly involved in co-developing advanced battery systems alongside NIO, including a 120-kWh battery pack based on the 46105 large cylindrical cell format.
Notably, while NIO had initially planned to use this high-capacity battery in its own flagship ET9 sedan, the model ended up featuring a 100-kWh pack supplied by CATL. However, the 46105 project is now being revived—thanks to CYVN’s influence—with plans for mass production by Eve Energy or Foxconn.
This wave of battery innovation comes at a time when McLaren is preparing to break new ground with its first-ever electric SUV, signaling a major departure from its traditional supercar-only lineup. As global consumer demand shifts toward electric crossovers and SUVs, McLaren’s move into the electric utility segment reflects both a market necessity and a technological opportunity—especially with NIO’s support.
Meanwhile, NIO is also advancing its own battery R&D, working with CATL to produce an 85-kWh pack on a 900-volt architecture for its third-generation vehicle platform. This battery will be shared across both NIO and its budget-friendly brand, Onvo.
Despite setbacks in 2023—including weak sales and a 40% downsizing of its battery R&D team—NIO’s battery ambitions have been reignited by strong backing from its UAE stakeholders. With McLaren now firmly under Abu Dhabi's wing, and with Chinese battery tech in its arsenal, the iconic British marque may be poised to redefine luxury performance in the electric era.
