- Nio said the joint venture was established to support joint production, but with Nio obtaining car-making clearance, there is no longer a need for it to continue.
- Nio said that the move will not have any impact on its production or business operations.
Nio (NYSE: NIO) explained why its joint venture with Anhui Jianghuai Automobile Group (JAC) is being terminated, following widespread media coverage yesterday.
In December 2023, Nio obtained vehicle manufacturing qualification, and its collaboration with JAC in vehicle manufacturing ceased at that time, according to a statement released by the company today.
The joint venture — Jianglai Advanced Manufacturing Technology (Anhui) Co — was established to support joint production and is no longer necessary, Nio said.
Both parties have amicably agreed to dissolve Jianglai, according to the statement.
The dissolution is a normal adjustment and will not have any adverse impact on Nio’s production or business operations, the electric vehicle (EV) maker said.
In 2016, Nio entered into a strategic partnership with JAC to produce Nio series models.
As the collaboration deepened, the two parties jointly established Jianglai in March 2021 to provide production support services for Nio, according to the statement.
Going forward, Nio and JAC will continue to deepen their cooperation in areas such as new energy vehicle (NEV) R&D, battery swap, and components, it said, without providing further details.
In January 2024, the two companies reached a strategic cooperation agreement on battery swap, aiming to conduct strategic cooperation in areas such as battery standards, battery swap technology, and the construction and operation of battery swapping service networks.
Nio initially did not obtain its own vehicle manufacturing qualification and instead produced its vehicles under JAC’s name, with both JAC and Nio brands displayed on the rear of its cars.
In December 2023, Nio obtained independent vehicle manufacturing qualification and acquired the two factory assets under JAC’s name, beginning fully independent production of its own vehicles.
These two factories are the F1 and F2 plants located in Hefei, Anhui province, with the former put into use in 2018 and the latter beginning production in September 2022.
The Nio F2 factory is the first project in the NeoPark large-scale industrial park in Hefei, and the first model produced there is the Nio ET5 sedan.
As Nio expands its product lineup, including models from its sub-brands Onvo and Firefly, its F3 factory is also set to begin operations soon.
The company’s third factory in Hefei will officially begin production in September, Nio founder, chairman, and CEO William Li said on July 6.
Nio and JAC’s joint venture is being terminated after it obtained independent car manufacturing qualification in December 2023.
