Chinese battery giant CATL eyes control of Nio's charging network

A major shake-up could be on the horizon in the world of electric cars as CATL, the world's biggest EV battery maker, is reportedly in talks to buy a large part of Nio Power, the battery charging and swapping division of the EV company Nio. This news comes after CATL announced it would invest up to RMB 2.5 billion (about $342 million) in Nio Power in March. Sources familiar with the matter say that CATL's interest goes beyond just a financial investment; the battery giant wants to gain significant control of Nio Power.

Nio Power started in 2017 and was valued at over RMB 10 billion ($1.37 billion) during a funding round last year. Nio and CATL recently announced a partnership with big ambitions: to build the largest battery swap service network across the globe. Battery swapping allows EV owners to quickly exchange a depleted battery for a fully charged one, saving time compared to traditional charging. CATL itself entered the battery swap market in 2022 and has plans for a massive network of 30,000 stations.

Nio has already built a substantial battery swap network with over 3,200 stations in China and 60 more overseas. CATL's interest in Nio Power suggests a strong belief in the future of battery swapping technology. In fact, CATL is also working with a large oil company in China to build over 500 swap stations this year, with a long-term goal of 10,000. CATL is not just a potential buyer; it's also a key supplier of batteries to Nio and a supporter of Nio's battery swap system.

Nio also has a unique service called BaaS (Battery as a Service), where customers can rent batteries. A company called Mirattery manages these rental batteries, and CATL is a shareholder in Mirattery. It's possible that CATL might increase its investment in Mirattery as well.

This potential acquisition highlights the growing importance of battery technology and charging infrastructure in the electric car market. CATL, as a dominant player in battery production, could gain control of Nio's extensive charging network and create a powerful force in the EV landscape. It also shows how different companies in the electric vehicle industry are exploring new ways to make owning and using electric cars easier for everyone.

The move could have significant implications for the future of EV charging and battery technology. If CATL gains control of Nio Power, it could accelerate the development and standardization of battery swapping services, potentially making it a more common option for EV owners. This could also influence how other car companies and battery manufacturers approach charging infrastructure in the years to come.

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