NIO (NIO) Stock Is Up +2% On Battery Swap Support From China's Ministry of Industry and IT

Governmental support is about to come for the NIO-led plan for battery replacement. The Ministry of Industry and IT (MIIT) encourages companies to develop the use of scenarios-based battery substitution model.

Governmental support

The MIIT would also promote local municipalities to grow the battery-swap economies through pilot projects in order to enable firms to create and generate goods based on battery-swap models.

The price per share of the company against this background began to move up. The growth at the beginning of the trading session on Wednesday is +2.1% . The company's shares have previously adjusted and continued its upward climb.

Feature of NIO batteries

NIO is the most popular battery swap advocate in China. Last month, the electric vehicle manufacturer announced its widely awaited battery rental service BaaS (Battery as a Service) in China.

An MIIT's researcher, Bai Hua, in the internal conference exclaimed that the MIIT will participate in the production of new energy vehicles as it takes the leading position in the  joint ministerial conference on energy efficiency and new vehicle industry's growth.

Bai Hua said that modern powered vehicles are still at the early stage of industrial growth for the car body and battery separation mode. The MIIT will provide support on the exploration of technical routes including eliminating troubles related to charging and battery swapping.

Who Will Service the Battery Replacement?

There have recently a few announcements were made about the creating a space to perform analysis and revision on battery-swap systems, battery-swap boxes and other related market-driven requirements. This space will operate in accordance with the Joint Declamation on the Development of an Eco-Circle for New Energy Vehicle Division and Battery, which was signed by 20 organizations, including China Association of Automobile Manufacturers, NIO, Dongfeng, BAIC, FAW, SAIC, Contemporary Amperex Technology (CATL), and the China Association of Automobile Manufacturers (CAAM).

It will facilitate the growth of new business ventures, such as battery asset businesses, as well as the collaborative production and implementation of new business models.