NIO’s New Brand Offshoot to Adopt CALB Battery
According to a number of informed sources, NIO‘s new brand “ALPS” has implemented an open power battery procurement strategy, confirming battery supply cooperations with CALB (China Aviation Lithium Battery Technology), BYD’s FinDreams Battery and others, 36Kr reported on August 23. In this regard, CALB responded that the company is in a critical period of going public and it is not the right time to discuss the deal.
“NIO‘s ALPS will adopt CALB’s one-stop ternary battery solution” sources said, and the vehicle has entered its early stages of development. Previously, 36Kr also reported that NIO would purchase BYD’s FinDreams Battery products for the new brand.
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ALPS is an independent mid-to high-end automobile brand launched by NIO, with a price range between 200,000-300,000 yuan ($30,000-44,000). The company plans to launch its first model by 2024. At present, the average price of NIO models is more than 400,000 yuan ($58,767), initially giving the EV maker a foothold in the high-end car market, but the market capacity remains relatively limited. NIO is planning to acquire a wider market share by way of new brand offshoots like ALPS.
According to sources, ALPS has been open to partnerships, not only utilizing CALB and FinDreams Battery, but also contacting companies such as EVE Energy Co., Ltd. and SVOLT.
Before ALPS, NIO cooperated exclusively with CATL in its battery procurement, investing a number of production lines in the battery manufacturer as well as planning to double production expansion. However, as NIO plans to enter the lower-end market, new requirements are required to control costs.
NIO is not only expanding its battery partnerships, but also creating a plan to build its own battery production line. William Li, CEO of NIO, said on the first quarter conference call that the company’s self-developed battery will be used in the new ALPS brands later in 2024. Some people in the industrial chain told 36Kr that the scale of NIO‘s self-made battery will not be too large, and the preliminary plan is to build a pilot line in Hefei, which is expected to be completed before 2023.