CATL (SHE: 300750) will increase its bet on Mirattery, the battery asset operator of Nio, in addition to the investment of up to RMB 2.5 billion yuan ($345 million) it is advancing into Nio's (NYSE: NIO) energy unit Nio Power, according to a report today from local media outlet 36kr.
The additional investment in Mirattery, or Wuhan Weineng, by the power battery giant may not be as much as RMB 2.5 billion yuan, 36kr quoted a source as saying.
Mirattery was established on August 18, 2020, with joint investment from CATL, Nio, Guotai Junan and Hubei Science Technology Investment.
In August 2020, Nio launched its BaaS (battery as a service) battery rental business, and Mirattery is the manager of these battery assets.
On December 23, 2024, Mirattery said that the scale of battery assets it manages exceeded 20 GWh.
At the beginning of Mirattery's establishment, its four initial investors each held a 25 percent stake.
After the changes in shareholding over the past few years, Nio is currently the largest shareholder with a 19.4 percent stake, while CATL and Hubei Science Technology Investment are both third largest shareholders with a 10.68 percent stake each.
CATL will gain more shares if it pushes ahead with its bet on Mirattery, 36kr's report noted.
Two days ago, Nio announced a new partnership with CATL to jointly create the world's largest battery swap service network, and its sub-brand Firefly's subsequent new EV models will use CATL's Choco-Swap technology standard.
The two parties will also carry out capital cooperation. Currently, CATL is advancing an investment of up to RMB 2.5 billion in Nio Power, Nio said.
Nio Power was established in May 2017 in Wuhan, Hubei, central China, and was initially wholly owned by Nio. Its legal representative is Shen Fei, vice president of the EV maker.
In May 2024, Nio announced that a Hubei government fund had made a strategic investment of RMB 1.5 billion in Nio Power, the first external investment in the unit.
On June 6, 2024, Nio management said during an earnings call that Nio held an equity stake of about 90 percent after Nio Power received its first external financing.
This means that at that time, Nio Power was valued at about RMB 15 billion yuan.
In CATL's latest investment, Nio Power's valuation has been reduced to about 10 billion yuan, according to the report by 36kr today.
This means that if CATL invests RMB 2.5 billion in Nio Power, it is expected to obtain a 25 percent stake, the report said.
CATL was also interested in taking over the shares of other shareholders in Nio Power to gain more say, according to the report.
Nio is China's largest player in the battery swap sector, with 3,182 battery swap stations currently in place.
CATL unveiled two standardized Choco-SEB battery packs in December last year, naming them #20 and #25, just as petrol in the Chinese mainland has #92, #95 and #98.
The battery maker said at the time that its long-term goal was to see its battery swap stations reach 30,000.
CATL's intention is to become the PetroChina or Sinopec of the EV sector, 36kr quoted industry sources as saying. PetroChina and Sinopec are among China's largest oil giants.
($1 = RMB 7.2434)
Nio partners with CATL to create world's largest battery swap network
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