Chinese EV maker NIO Inc (NYSE: NIO) has invested in a startup firm developing fusion technologies. It endorses battery swapping as a quicker solution for powering up EVs and an energy storage facility to improve grid stability.
In two decades, the newly established company, Neo Fusion, will research and develop technologies to commercialize controlled fusion globally, Reuters cites familiar sources.
Neo Fusion is 50% controlled by China’s eastern province of Anhui government-owned energy companies and investment arms. It has a registered capital of 5 billion renminbi ($0.73 billion),
Nio invested 995 million renminbi ($145.42 million) for a 19.9% stake, while Nio Capital, founded by Nio’s CEO William Li, invested 505 million renminbi ($73.81 million) for a 10.1% share.
The Tesla Inc (NASDAQ: TSLA) rival told Reuters its aims to facilitate the R&D and commercialization of nuclear fusion technology by making financial investments in this project, which eyes more strategic and financial investors in phases.
Nio has also been developing battery technologies and is planning to build a battery plant with an annual capacity of 40 gigawatt-hours in Hefei City in Anhui province.
Separately, NIO tapped Autoliv, Inc (NYSE: ALV) subsidiary Autoliv China to develop safety products for electric vehicles and sustainable technologies.
The new technologies will include a passenger airbag that deploys from the headliner using an environmentally friendly inflator, and they are also co-developing a new airbag concept that provides complete protection for different seating positions.
Price Action: NIO shares traded higher by 1.02% at $7.90 premarket on the last check Friday.
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This article Nio, A Big Supporter Of Battery Swapping, Buys Stake In Nuclear Fusion Startup originally appeared on Benzinga.com
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