Chinese battery giant Contemporary Amperex Technology, or CATL, discussed acquiring a controlling stake in electric vehicle maker Nio Inc‘s (NYSE:NIO) power unit.

Nio Power provides charging and battery swapping services to Nio drivers, Tesla Inc (NASDAQ:TSLA).

The Chinese EV maker’s power unit runs over 3,000 battery swapping stations in China, Reuters reported, citing sources.

Also Read: Alibaba, BMW Team Up To Bring AI-Powered Smart Assistant In Next-Gen China Cars

Benzinga reached out to Nio for its comments on the report.

CATL announced in March that it would invest up to 2.5 billion yuan ($342 million) in the unit Nio Power.

The Chinese EV battery company is ramping up investments in battery-swapping facilities to replace a third of gas stations in China. However, the investments have hampered its profitability.

CATL tapped Baidu Inc (NASDAQ:BIDU) to develop driverless EVs with battery-swapping tech in February.

Meanwhile, Nio announced it delivered 15,039 vehicles in March 2025, up 26.7%. The deliveries comprised 10,219 vehicles from its premium smart electric vehicle brand NIO and 4,820 from the company’s family-oriented smart electric vehicle brand ONVO. The company delivered 42,094 vehicles in the first quarter of 2025, up 40.1%. The company’s cumulative deliveries reached 713,658 as of March 31, 2025.

According to CIC, the global autonomous driving market could grow at an 80% compound annual growth rate from $93 billion in 2025 to $1.745 trillion by 2030. The market could grow at 85% CAGR for China, reaching $639 billion by 2030.

Price Action: NIO stock is down 6.93% at $3.22 in premarket at last check Monday.

Read Next:

• China’s DeepSeek Teams Up With Tsinghua University To Raise AI Bar, Boost Reasoning Capabilities

Image: Shutterstock