will also plan and develop battery systems of longer service lives for 's upcoming models.

(Image credit: CnEVPost)

Nio (NYSE: NIO) has entered into a new collaboration agreement with its power battery supplier CATL (SHE: 300750) to create longer-life electric vehicle (EV) batteries.

The two companies signed a framework agreement today in Beijing to carry out long-life battery R&D based on Nio's battery swap needs, according to a statement from the EV maker.

CATL has developed core technologies such as slow capacity attenuation, self-repairing Solid Electrolyte Interphase (SEI) film and lithium supplement, to extend the service life of vehicle batteries, Nio said.

In the partnership, Nio and CATL will focus on long-life technology for swappable batteries, conduct joint seminars, make technological breakthroughs and innovations, and promote product applications, according to the statement.

CATL will also plan and develop battery systems of longer service lives for Nio's upcoming models, the EV maker said.

The two companies aim to make battery swap services available to more EV users through the long-life battery technology partnership, eliminating the need to worry about high replacement costs due to improper batteries or reduced vehicle residual values due to battery attenuation, Nio said.

CATL is the only battery maker with a global market share of more than 30 percent and is the sole supplier of batteries currently circulating in Nio's battery swap network.

Nio filed for battery packs using smaller supplier CALB for a number of models last year, although they are not yet in service.

The EV maker has also teamed up with local startup Beijing WeLion New Energy Technology to make semisolid battery packs with a 150-kWh capacity, which are expected to enter service in the second quarter.

The current battery packs in Nio vehicles and battery swap stations are 70-kWh, 75-kWh, and 100-kWh packs from CATL.

On January 17, 2023, Nio signed a five-year comprehensive strategic partnership agreement with CATL, which mentioned a business model partnership based on long-life batteries.

The latest signing is part of Nio's long-life battery strategy and means that it has officially started its efforts in this area.

Typically, new energy vehicles (NEVs) have an eight-year battery warranty. From 2025 to 2032, battery warranties of nearly 20 million NEVs had or will run out, which leads users to issues including driving cars with unwarranted batteries, lifespan difference between the vehicle and the battery, and quite high battery replacement costs, William Li, Nio's founder, chairman, and CEO, said.

"Therefore, it has become a pressing task to address the life span issues of batteries," Li said.

Nio sees its battery swap business model, which is different from most other EV makers, as a natural advantage in developing long-life batteries.

Nio completed its first battery swap station in Shenzhen on May 20, 2018, and last night the company saw all of its 2,382 stations cumulatively deliver 40 million services.

Nio has built the industry's first battery lifecycle health operating system that covers the three main conditions that affect battery life: temperature, intensity and frequency, it said.

Meanwhile, through big data-based operations and scheduling, it has further extended the lifespan of its swappable batteries, which retain 80 percent of their capacity after 12 years of use, the company said.

In terms of battery R&D, Nio has significantly improved the calendar life and cycle life of its batteries through R&D focusing on the intrinsic properties of anode and cathode materials as well as electrolyte, it said.

Nio has developed full-stack R&D capabilities covering material synthesis, trial production of cells, system assembly, and validation and testing, the company said, adding that it has accumulated 1,435 technology patents, of which 104 are related to battery lifespan.

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