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NIO (NYSE:NIO), one of the leading manufacturers of electric cars in China, appears to be on a roll lately. Coming on the heels of a major partnership with China’s largest network of gasoline stations, NIO has now secured another monetization avenue for its charging network via Ford (NYSE:F).
To wit, while opening the reservations for its Mustang Mach-E in China, Ford has also announced a sweeping partnership with NIO:
“Ford will also work closely with charging partners such as the State Grid. Mustang Mach-E users can access over 300,000 high-quality public charging piles, of which 160,000 are fast charging, in more than 340 cities across the country through an exclusive APP. NIO’s nationwide fast-charging network will also be accessible to Mustang Mach-E users.”
As stated earlier, NIO is set to formalize its strategic partnership with Sinopec on the 15th of April. The arrangement would facilitate the deployment of second-generation battery swap stations across Sinopec’s vast network of gasoline stations. This, in turn, would allow NIO to lock in a substantial number of existing and future customers to its ecosystem, thereby creating a monopoly of sorts in the largest market for electric vehicles. As a refresher, NIO’s Battery Swap 2.0 stations can perform 312 automated battery swaps per day, with each swap taking place in under 3 minutes. The company plans to build at least 500 such stations across China in 2021.
Of course, given the proprietary tech involved in utilizing battery swap stations, Ford is unlikely to tap into this growing network. Nonetheless, NIO does offer its customers a variety of charging solutions. These include a dedicated home charging solution, called the Power Home, and a mobile charging solution, called the Power Mobile, whereby an EV may be charged through a fleet of charging trucks. Moreover, the Power Express is a 24-hour facility available on-demand to NIO customers whereby EVs are picked up, charged, and then dropped off at a pre-chosen spot. Finally, NIO customers can also access China’s network of over 300,000 charging stations.
In a bid to make its EVs more affordable, NIO allows users to buy its electric cars while renting batteries under the ambit of its Battery-as-a-Service (BaaS) facility. For a fixed monthly payment – $141 per month for the 70 kWh battery pack – users can slash over $10,000 off the retail price of NIO’s EV models.
