A new company called Zhongan Energy was launched today and it will build 1,000 battery swap stations with the support of and two state-owned groups in Anhui province.

(Image credit: Nio)

Nio (NYSE: NIO) has signed a cooperation agreement with two state-owned groups in Anhui province that will support a newly formed company in building battery swap stations.

Anhui Province Energy Group (or Wenergy), and Anhui Transportation Holding Group signed a strategic cooperation agreement with Nio today on building a shared energy storage, charging, and battery swap system, according to a statement.

To promote the development of the new energy vehicle industry, Zhong'an Energy was established today with the support of the Anhui government, according to a statement from Nio.

The new company, co-funded by a number of companies including Anhui Province Energy Group, Nio, and Gotion High-tech, will be responsible for promoting a unified charging and battery swap network across the province of Anhui.

Under Nio's strategic partnership with Anhui Province Energy Group and Anhui Transportation Holding Group, the three companies will support the newly established Zhongan Energy in building 1,000 stations with energy storage, charging and battery swap capabilities.

The three parties will also cooperate in the fields of energy storage, charging and battery swap involving battery standards, technology, battery asset management and operation, new power system cooperation, and equipment manufacturing, according to the statement.

Meanwhile, Nio has entered into battery swap business cooperation with Anhui-based Anhui Jianghuai Automobile Group (JAC) and Chery.

These collaborations are designed to enhance charging and battery swap infrastructure and will make Anhui the most friendly market for smart electric vehicles with the best charging and battery swap experience, Nio said.

Nio's statement didn't provide any further details, but it looks like the newly-created Zhongan will likely be responsible for the construction of Nio's battery swap network that will be shared with its partners.

Nio's battery swap network will include both dedicated and shared networks, and the company will begin using building the shared battery swap network in 2024, which will be available for both the Nio and Alps brands, William Li, the company's founder, chairman, and CEO, said in a December 5 earnings call.

At the Nio Day 2023 event on December 23, Nio unveiled its fourth-generation battery swap station, which will be equipped with 23 battery bays and will increase its single-day service capacity to 480 services with a 22 percent reduction in time per service.

Nio plans to continue adding 1,000 battery swap stations in China in 2024, bringing the total to more than 3,310, Li said at Nio Day 2023.

Nio confirms battery swap tie-ups with JAC, Chery