NIO launches Battery-as-a-Service and announces the creation of a battery asset company

Shanghai (Gasgoo)- Chinese electric vehicle startup NIO officially launched the BaaS (Battery-as-a-Service) service on August 20, which allows customers to purchase electric vehicles and separately subscribe for battery usage.

(Picture source: NIO)

The service will make the cost of using an electric vehicle more affordable. If users decide to purchase a NIO vehicle and subscribe to use the 70 kWh battery under the BaaS model, they can enjoy the purchase price of the vehicle with a deduction of 70,000 yuan ($10,114) on the original price and pay a monthly fee of 980 yuan ($142). ) for the battery. Meanwhile, users will still benefit from the purchase tax exemption and NEV government subsidies.

NIO launches Battery-as-a-Service and announces the creation of a battery asset company

(Picture source: NIO)

William Li, Founder and Chairman of NIO, said during NIO’s second quarter 2020 earnings call that the process for its first vehicle under the BaaS (Battery as a Service) model has been validated, including the purchase insurance, loan application and license plate registration.

“The BaaS model has been planned for a long time with our unique battery swapping technologies. The successful launch of the BaaS model will allow NIO users to benefit from our products’ lower initial purchase prices, flexible battery upgrade options, and battery performance assurance,” said William Bin Li.

To date, the startup has deployed 143 battery swap stations in 64 cities across China and performed more than 800,000 battery swaps for users, according to Li.

NIO launches Battery-as-a-Service and announces the creation of a battery asset company

(Picture source: CATL)

A new battery asset management company led by NIO was created two days ago. Named Wuhan Weineng Battery Asset Co., Ltd, the fledgling company involves registered capital of 800 million yuan ($115,583,520) and is located in the Wuhan East Lake high-tech development zone, according to China Research Platform of Tianyancha enterprise data. Shen Fei, vice president of power management at NIO, is the legal representative.

Tianyancha records show that Wuhan Weineng has four investors, including NIO (Anhui) Holding Ltd. (the legal entity of NIO China) and the Chinese electric battery giant CATL. The latter announced the same day that it had acquired 25% of the capital of Wuhan Weineng for an amount of 200 million yuan ($28,895,880).

Wuhan Weineng is working on battery asset management based on the separation of vehicles and batteries. According to Tianyancha, it includes a range of activities including rental, maintenance, wholesale and retail of electric batteries, recycling of decommissioned batteries, electric power engineering, operation and management of industries and products related to new energy and electric power, planning, R&D and design of electric vehicle charging and battery exchange infrastructure as well as the technical development of cloud-based platforms and big data.

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