Nio has decided to make its own EV battery packs in 2024, as part of a drive to improve profitability and competitiveness to take on rivals such as Tesla.
Nio plans to start producing an 800-volt battery pack in the second half of 2024, its Chairman William Li told analysts.
Most electric vehicles operate with 400-volt batteries while Porsche’s Taycan electric cars are powered by 800-volt lithium-ion battery packs, which recharge faster.
Nio, which has over 400 employees working on the research and development of battery technologies – also plans to use a combination of self-produced and externally sourced batteries, in the long run, a plan similar to Tesla.
Nio plans to use self-produced battery packs for its new mass-market marque, which is expected to be ready for sale in the second half of 2024.
These new models are expected to be priced around 200,000 to 300,000 yuan ($30,000-$45,000).
Nio said battery costs would have risen in the second quarter after the renewal in April of an agreement with its sole battery supplier CATL.
The company said its net loss narrowed to 1.8 billion yuan in the first quarter from 4.9 billion a year earlier.
Nio forecast deliveries of between 23,000 and 25,000 vehicles in the quarter ending June 30, down from 25,768 in the first quarter, reflecting a general drop in production by major automakers as a result of a two-month-long COVID-19 lockdown in Shanghai.