byd-warmly-welcomes-a-delegation-from-nio-to-its-headquarters-–-is-nio-about-to-formally-launch-its-affordable-sub-brand?

This isn’t funding recommendation. The creator has no place in any of the shares talked about. Wccftech.com has a disclosure and ethics coverage.

When two of China’s greatest EV producers meet fairly publicly – and with superior discover – it’s a reason behind celebration because it underscores the likelihood of vital developments materializing within the close to future. It is for that reason {that a} go to by NIO’s delegation to BYD’s headquarters has been garnering a lot consideration just lately.

Something brewing between BYD and NIO.

Photo reveals BYD constructing, welcoming a NIO delegation.$BYDDY $NIO pic.twitter.com/57SmTDZzsq

— Marcel Münch (@_mm85) August 25, 2022

As is obvious from the tweet above, a banner displayed on the BYD constructing is attracting numerous buzz on social media. The banner warmly welcomes a delegation by NIO, thereby elevating the likelihood of an vital announcement materializing imminently.

Bear in thoughts that NIO has lengthy been engaged on launching an reasonably priced sub-brand, which within the phrases of its CEO Li Bin, could be equal to the synergetic relationship that exists between Toyota and Lexus.

Critically, NIO is anticipated to faucet BYD for a broad-based partnership on this reasonably priced sub-brand. Of course, such a partnership makes financial sense since BYD’s LFP-based Blade batteries can final 1.2 kilometers or 745,645 miles. While CATL remains to be NIO’s main battery provider, it has been going through capability points just lately amid rising international demand. Moreover, BYD already has a charging partnership with NIO for its EVs.

Since NIO depends fairly closely on its battery swap infrastructure as a particular promoting level, it constantly maintains an outsized demand for batteries relative to its gross sales quantity. This is as a result of every battery swap station can retailer round 13 battery packs underneath optimum situations, enabling a very automated battery swap in underneath 3 minutes. Moreover, every such station can carry out 312 utterly automated battery swaps per day.

NIO had introduced at its Power Day 2022 occasion again in July that it has now put in 1,011 battery swap stations, together with 256 stations alongside Chinese highways. By 2025, the corporate expects to induct not less than 4,000 such stations into its international community, thereby making certain that 90 % of its clients have not less than one battery swap station inside a 3-km radius of their residence.

Given this outsized demand for battery packs, it is sensible for NIO to faucet BYD for its upcoming reasonably priced sub-brand, and never rely solely on CATL. Of course, this isn’t the one avenue of potential cooperation between the 2 firms. BYD may need determined to enter the swappable battery area. If so, it will make sense for the EV big to faucet NIO’s established battery swap community.

先漲為敬 pic.twitter.com/Snprf3b7wX

— Zheping Huang (@pingroma) August 25, 2022

Meanwhile, in what may seem as salvation for NIO’s US shareholders, it seems that the US and China are nearing an settlement on the thorny audit problem that has been plaguing US-listed Chinese ADRs for some time now. If an understanding is reached, it can preclude the potential for such Chinese ADRs having to de-list from American exchanges.