Nio Inc. to Spin Off Battery Manufacturing Unit

The move, which could occur by year's end, aims to shorten the EV maker's timeline to profitability and follows solid third-quarter earnings.

Chinese electric vehicle (EV) maker Nio Inc. plans to spin off its battery manufacturing unit within a matter of weeks, a move that could shorten Nio's timeline to profitability.
The new battery manufacturing unit would be staffed by the division's top engineers, as other employees in Nio's current battery department are reassigned to other teams.
The spin-off comes a day after Nio reported solid third-quarter earnings, including significantly increased vehicle delivery numbers and shrinking losses.
The emerging battery division is planning to attract external investors following its proposed spin-off, potentially occurring by the end of this year.
The planned facility is designed to have an annual production capacity of 40 gigawatt hours (GWh) of batteries, sufficient to supply around 400,000 long-range electric vehicles.