Nio is moving forward with its proprietary large cylindrical battery project. The company expects to produce a small batch of these cells by the end of the year, following several project delays.

Manufacturing of the new cells will be handled by partners Eve Energy and Gotion High-tech. While Nio retains control over internal research and development, mass production remains a challenge in the near term.

CEO William Li stated in September that Nio has invested more than ¥2 billion in battery R&D. The company aims to combine its own long-life cell designs with contract manufacturing to manage costs.

Simultaneously, Nio is expanding its reliance on CATL for prismatic batteries. Brands such as Onvo and Firefly now utilize CATL technology, including the Qilin battery pack for the Firefly model.

Nio previously planned a 40 GWh annual capacity factory in 2023 but later shifted its strategy toward outsourcing. The company continues to develop a 120-kWh battery pack for its main-brand vehicles.