Nio, the Electric Vehicle Maker from China Will Obtain Capital for Its Fund through Global Deals

Ignoring the ongoing trade dispute between the US and China, Chinese electric vehicle maker Nio will seek worldwide funding deals for expansion. This includes deals sourced from the US, according to the managing partner of the company.

NIO Capital, the $1.5 billion fund has been created by Nio in partnership with leading investment firms, such as Hillhouse Capital and Sequoia.

Managing Partner of the company, Ian Zhu, has stated in an interview that NIO Capital is pursuing finance deals globally to reshape and reinvent the energy and transport sectors. According to him, investments are being pursued with an “open attitude” and a “global perspective”. Ian Zhu believes that this farsighted policy will lead to the development of the best technologies, which are expected to play a key role in dominating the global market. As a result, the fund will source from leading international economies, including the United States.

It is reported that fundraising is currently underway, which can help raise hundreds of millions of dollars for the company. But Zhu did not provide further details on the fundraising efforts.

The company has made investments in around 30 companies mostly from China. Aggregate investments stand at about 4 billion yuan.

Ronbay Technology, a manufacturer of lithium ion battery components, is included in Nio’s investment portfolio. This subsidiary will participate with 25 other high-tech companies in the inauguration of trade on the Star Market. Previously, Ronbay earned 1.2 billion yuan in capital through its IPO.

Created by China’s President Mr. Xi Jinping, the Star Market is a technology innovation board that seeks to support the proliferation and growth of high-tech firms in the country. China hopes to foster technological innovation and spur economic growth through these firms.

United Winners Laser is another Nio-backed company headquartered in Shenzhen. New energy vehicle and battery manufacturers have widely adopted laser welding machines produced by the subsidiary.

“Made in China 2025” is an ambitious strategy for rapid industrial development to make China self-sufficient in technology. New energy vehicles are included in the core 10 technologies, which Beijing seeks to master for sustained economic prosperity and growth.

China is the biggest market in the world for new-energy vehicles. Last year, China experienced sales of 1.2 million cars as compared to the previous year. This represents a growth of 61.7 percent compared to 2017.