Geely and Nio partner to consolidate battery operations in China

China is facing an industrial overcapacity challenge as its domestic vehicle market shrinks. Sales in the country fell 20.8% during the first eight months of 2026 compared to the same period in 2025, driven by reduced consumer spending and a decline in property prices.

In response to this contraction and the surplus of manufacturers, a wave of industry consolidation is emerging. Major electric vehicle makers Nio and Geely have announced an agreement to combine their battery charging and swapping operations. Under the deal, Geely will pay $95 million for a 30% stake in the combined business, integrating its swapping operations into Nio’s larger structure.

The partnership aims to coordinate the development of battery technologies, with the goal of reaching 10,000 battery swapping stations by 2030. Additionally, Nio will acquire a 10% stake in Geely’s charging division, which is projected to have 22,000 stations by the end of next year.