Emerging Chinese electric vehicle maker, Nio Inc. (NYSE:NIO) announced Thursday the launch of their updated battery leasing program. Under the new terms, drivers leasing a battery from Nio are allowed to replace their battery packs with a higher energy density one daily rather than after months or years, as was previously the case.
Nio EV owners with the existing 70/75 kilowatt-hour (kWh) battery pack now have the option to exchange it for a higher-capacity "long-range" battery (100kWh) by paying an additional fee of RMB 50 ($7) per day. They can conveniently return the swapped battery at any Nio swap station located across China.
According to Nio's president, Qin Lihong, the company has offered 80,000 upgrades in the past two years up until Thursday. He further mentioned that this number could potentially increase by "several hundred thousand" in the upcoming year as more customers seize the opportunity to enjoy the advantages of an extended driving range at a relatively affordable cost.
The electric vehicle manufacturer also restated its prior dedication to expanding the battery swapping and supercharging network. This initiative aims to demonstrate the superior experience Nio owners can enjoy, which includes convenient access to recharging ports and a seamless recharging process.
As of Thursday, Nio boasts ownership and operation of one of China's most extensive recharging networks, featuring 1,564 swap stations and 16,745 public chargers. customers have swapped over 25 million EV battery packs, meaning a Nio car is starting up with a replenished battery pack every 1.6 seconds.
Shares of NIO are up 3.15% in afternoon trading on Friday.