China’s NIO, a manufacturer of electric cars, is taking on a new approach to improve profitability and compete with companies like Tesla through the development of its own batteries.
NIO plans to make its own high-voltage battery packs starting in 2024, from a design it has also developed on its own, according to Reuters.
Chinese automaker NIO is looking to increase its battery supply, while simultaneously reducing reliance on suppliers amidst increasing competition and global supply concerns. The move looks to echo Tesla’s own move of producing its own battery packs, consisting of its newest 4680 battery cells.
The NIO battery pack will be 800 volts and will be unveiled to the market in the back half of 2024, as stated by chairperson William Li on a call with analysts on Thursday.
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The vast majority of electric vehicles (EVs) utilize a 400-volt battery pack, with one exception being the Porsche Taycan EVs, which feature an 800-volt lithium-ion battery pack offering quicker charging speeds.
Li said that NIO plans to have the next-generation batteries ready for its next round of EVs, set to announce in the latter part of 2024.
Additionally, Li added that these models will cost around 200,000-300,000 yuan ($30,000-$45,000 USD).
In the quarter ending June 30, NIO forecast deliveries between 23,000 and 25,000, down from 25,768 units in Q1.