Chinese electric vehicle maker Nio signed a strategic cooperation agreement on Monday with battery giant CATL, underscoring efforts to expand battery swapping infrastructure while deepening capital and business ties.

In a joint statement on Tuesday, the firms highlighted plans to establish the world's most advanced battery swap network for passenger vehicles.

Also, CATL plans to invest up to 2.5 billion yuan ($345.6 million) in Nio's energy business, reinforcing their partnership.

They will deepen battery swap network sharing and promote the adoption and upgrade of swap services based on a unified battery standard.

CATL will support the expansion of NIO's swap network, while future models of NIO's Firefly brand will be integrated into CATL's Chocolate Battery Swap system when appropriate.

This strategy aims to provide EV owners with a more convenient and efficient swap experience, further enhancing the accessibility of pure electric mobility.

"This strategic partnership marks a new phase for the battery swap model," said William Li, NIO's CEO.

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The partnership builds on an earlier agreement signed in March 2024, in which the two companies pledged to co-develop long-life battery technology.

Nio, which operates China's largest battery swap and charging network, has built 3,172 swap stations to date, including nearly 1,000 along highways, covering over 700 cities.

The company plans to expand its network further, targeting full coverage in over 1,200 county-level regions across 14 provinces by mid-2025, with an additional 2,300 covered by year-end.

Besides CATL, Nio has also established strategic swap partnerships with automakers including Changan, Geely, Chery, JAC, GAC, FAW, and Lotus, reflecting broader industry efforts to integrate battery swapping as a viable alternative to charging.