Nio hopes that its battery leasing program and battery swapping options will help it establish a strong presence in Europe.
Nio president and co-founder Qin Lihong recently revealed that the Chinese electric vehicle maker will establish 1,000 battery swapping stations outside China by 2025, most of which will be located throughout Europe. The company has already opened its first overseas plant in Hungary to manufacture various power products, including its battery swapping stations.
“We are comprehensively ahead of our competitors in terms of products and services,” Qin told Reuters. “It’s true there will be more EV models to be launched in Europe in three years, but we are also making more progress.”
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The company believes its battery strategy gives it an advantage of its competitors with lower up-front costs by separating the battery from ownership. In China, Nio established a company that includes battery firm CATL where the battery packs are purchased for leasing and companies then collect subscription fees from Nio owners. Qin says Nio is looking to partner with an asset company in Europe to finance the ownership of batteries for its leasing program.
Furthermore, Nio’s battery swapping technology provides a quicker alternative to current charging solutions and shifts the costs and risks to the company, not the individual owner.
The company’s European strategy is being led by Norway, where it has sold approximately 800 examples of the ES8 electric SUV and installed two swapping stations over the last year. Qin says this local launch has given Nio the confidence that the ES8 is “comprehensively ahead” of alternatives from larger European car manufacturers. Its European expansion will continue this year and include the launch of the ET5 and ET7 sedans.
