Nio Inc. has opened five new battery swap stations in China as the Chinese electric vehicle maker embarks on an aggressive expansion strategy, cnEVpostreportedSunday.
What Happened: Nio now has a total of 282 battery swap stations in China, as per the report.
In addition, the company currently has 194 supercharging stations, 371 destination charging stations and access to more than 380,000 third-party charging piles in China, the report added.
Why It Matters:Seen as a Tesla Inc. rival, Nio has pioneered the concept ofbattery-as-a-servicethat would allow users to rent a battery instead of purchasing one, helping to trim the cost for EV owners.
Nio’s second-generation battery swap station,unveiledin January this year, can accommodate 13 batteries and has a daily capacity of up to 312 swaps. Battery-swapping provides the advantage of saving time as opposed to charging.
Nio aims to have 500 battery swap stations in operation nationwide by the end of this year. Several government departments and Chinese cities have supported the construction of battery swap infrastructure.
However, Ark Invest analyst Sam Korus said in a note in May thatgovernment support in the form of subsidieswill harm Nio's global ambitions in the long run. The economics associated with battery swapping will lead to design constraints and shortened battery lives, according to the analyst.
Price Action: Nio shares closed almost 0.9% lower in Friday’s trading session at $45.07.