Nio will grant Forseven a worldwide license to use certain of the company's existing and future technologies related to or subsisting in the company's smart EV platforms.
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Nio (NYSE: NIO) unveiled its technology licensing agreement with a subsidiary of Abu Dhabi government fund CYVN Holdings, after two appointees from the Middle Eastern investor joined its board earlier this month.
The Chinese electric vehicle (EV) maker announced today that its subsidiary, Nio Technology (Anhui) Co Ltd, has entered into a technology license agreement with Forseven Limited, a subsidiary of CYVN.
Forseven is a UK-based electric vehicle startup company bankrolled by CYVN.
Nio will grant Forseven a non-exclusive and non-transferable worldwide license to use certain of the company's existing and future technical information, technical solutions, software and intellectual property related to or subsisting in the company's smart EV platforms, according to its announcement.
These licensed technologies will be used for:
(i) The research and development, manufacturing, sales, import and export of vehicle models sold or marketed under Forseven brand(s) meeting pre-agreed manufacturer's suggested retail price (“MSRP”) thresholds (excluding tax) under the Technology License Agreement (collectively, the “Licensed Products”),
and (ii) the provision or procurement of certain after-sales services for the Licensed Products to its users.
Nio will receive technology license fees, consisting of a non-refundable fixed upfront fee and royalties determined based on future sales of licensed products by Forseven.
Unless terminated, the technology license agreement will remain in force until the end of production of the licensed products or the expiration of Forseven's obligation to provide after-sales service to its users, according to the statement.
Nio may terminate the technology license agreement under certain conditions, including if a company that owns one or more automotive brands and sells vehicles under such brands to the market obtains control of Forseven.
CYVN completed two investments in Nio totaling $3.3 billion in 2023, making it the largest shareholder in the Chinese EV maker, with a stake of approximately 20.1 percent.
On February 7, Nio announced that its board of directors appointed Eddy Georges Skaf and Nicholas Paul Collins as new directors.
At the same time, James Gordon Mitchell, Tencent's senior executive vice president and chief strategy officer, resigned from Nio's board.
Skaf has been CYVN's chief investment officer since May 2023. Since June 2023, he has also been a director of Foreight Limited and Forseven.
Collins has been chief executive officer of Forseven since January 2024.
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