Electric vehicle maker Nio (NYSE:NIO) recently entered into a strategic partnership with China steel producer Baosteel to join forces in the latest technology, new material applications, and carbon-free pathways.
A ceremony held on the 10th of January 2022 at NIO’s global headquarters in Shanghai marked the collaboration between the two companies. Baosteel’s Chairman, Zou Jixin, and Nio’s Founder, Chairman, and CEO William Li attended the ceremony.
Baosteel, a listed subsidiary of China Baowu Steel Group, is on a mission to achieve carbon-neutrality by 2050. The group operates in steel-related businesses including, steel smelting, electricity, coal, and industrial gas production.
The partnership will assist Nio in leveraging Baosteel’s expertise in products like non-oriented silicon steel and automotive plates as it positions itself in the rapidly growing EV industry amid the heightening climate change concerns.
Though Nio hasn’t had any new model releases since the EC6’s launch in the third quarter of 2020, the firm intends to deliver three new products based on the NIO technology Platform 2.0, including the ET7 model. The battery swap technology is a game-changer and adds a competitive edge over its peers, while the firm plans ET7 deliveries to commence in the first quarter of 2022.
Investors appear to be listening after Macquarie analyst Erica Chen launched coverage of U.S.-listed Chinese EV makers NIO, XPeng, and Li Auto, saying investors should buy the stocks. Shares of the Chinese EV manufacturer (NIO) climbed as much as 5% on Wednesday. Moreover, analyst Ming Hsun Lee from BofA Securities recently reiterated a Buy Rating on Nio, indicating an upside potential of 116.5%, to $65.
As unit sales continue to grow in China, Chen projects NIO’s sales to grow at roughly 50% in the next couple of years.
Nio’s plans to launch the ET7, increase production, and expand globally in countries like Germany, Norway, and the Netherlands, further have analysts optimistic about the firm’s 2022 performance.
To invest in NIO stocks visit MEXEM.