Chinese EV maker Nio deal to license technology to Middle East start-up Forseven, unit of Abu Dhabi’s CYVN Holdings
- Deal allows Forseven, a unit of Abu Dhabi government fund CYVN Holdings, to use Nio’s know-how and technology for EV R&D, manufacturing, distribution
- Deal highlights increasing influence Chinese companies have on the development of the global EV industry, analyst says
Nio’s subsidiary will receive technology licensing fees comprising a non-refundable, fixed upfront payment on top of royalties determined based on Forseven’s future sales of licensed products, the filing said. It did not elaborate on details of the products Forseven plans to develop.
“The deal once again proves that Chinese companies are leading the transition of the global automotive industry into the EV era,” said Eric Han, a senior manager at Suolei, an advisory firm in Shanghai. “It also creates a new revenue source for Nio, which needs increasing cash inflow to turn profitable.”
EVs have been a key investment area since China consolidated economic ties with the Middle East after President Xi Jinping’s visit to Saudi Arabia in December, 2022.
The two sides said they will also set up a joint venture to develop and manufacture self-driving services, autonomous vehicles and related infrastructure in key markets in the Middle East and North Africa.
Nio said the ET9 will have a host of cutting-edge technologies the company developed, including high-performance automotive chips and a unique suspension system. It will be priced at about 800,000 yuan (US$111,158), with deliveries expected in the first quarter of 2025.