SHANGHAI – Chinese electric-car maker Nio said that in 2024 it will start making high-voltage battery packs that it has developed itself, 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 on a call on Thursday.
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.
Li said 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’s.
Li said Nio plans to use self-produced battery packs for its new mass-market marque, which is expected 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), he added.
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.
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The company said on Thursday its net loss narrowed to 1.8 billion yuan in the first quarter from 4.9 billion a year earlier.
But 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-months long COVID-19 lockdown in Shanghai.
U.S.-listed shares of Nio, which closed down 7.7% on Thursday, have lost 44% of their value so far this year.
($1 = 6.6796 Chinese yuan renminbi)
(Reporting by Zhang Yan, Brenda Goh; Editing by Simon Cameron-Moore)