NIO Capital says battery swapping key to low-cost electric vehicles, invests in provider Aulton
Battery swapping should be a ‘public network asset’, says managing partner Ian Zhu
NIO Capital, the technology investment firm affiliated with electric vehicle start-up NIO, said its investment in Aulton, a Guangzhou-based battery swapping technology provider, underlined its conviction that electric vehicles should be powered by a public battery charging network that can be shared between different vehicle users.
Ian Zhu, the company’s managing partner, told the South China Morning Post Aulton was among the latest additions to its 15 portfolio companies in the new energy sector. The investment, worth “several hundred million yuan”, was made this year, he said, without giving any further details.
NIO Capital, which manages a renminbi fund totalling US$1.5 billion and is reportedly in the process of closing a dollar fund, was the lead investor in Aulton’s recent series-A funding round, and is prepared to back subsequent financing rounds.
“We are looking at technology and companies that enable energy users to be more energy efficient. Electric vehicles are the black swan for the energy sector, as the whole energy landscape will change, and it provides the perfect storm today for investors to capture the best opportunity,” Zhu told the Post on the sidelines of the China Private Equity Summit 2018 on Tuesday. He said the traditional role played by major oil and gas giants such as Shell, BP and Petro China, and utility providers would undergo fundamental changes.
Battery swapping is not new. Better Place, a company based in Palo Alto, California tried to pioneer the concept, but was unsuccessful and had to file for bankruptcy in 2013.
