Nio (NYSE:NIO) stock is rising higher on Wednesday following news of a deal with Baoshan Iron & Steel.
This deal will have the two companies working together to cover certain aspects of steel creation. That includes producing the material, as well as organizing the supply chain surrounding it.
This strategic partnership between Nio and Baoshan Iron & Steel will likely assist the former in acquiring components for its electric vehicles (EVs). That’s due to Baoshan already handling non-oriented silicon steel, as well as automotive plates.
Leaders of both companies attended a ceremony for the signing of the collaboration deal. However, they didn’t reveal any further details about it. That includes exactly what roles Nio will play in the agreement, as well as how it will benefit from it, reports CNEVPost.
While Nio and Baoshan Iron & Steel signed their strategic partnership on Monday, it’s taken a few days for the news to reach the rest of the world. That’s likely why we’re seeing shares of NIO stock pop days after the agreement was reached.
Baoshan Iron & Steel is a strong partner for Nio. The company was founded in 2000 and is a subsidiary of China Baowu Steel Group. Its current goal is reaching carbon-neutrality by the time 2050 rolls around.
NIO stock is seeing decent activity today with some 21 million shares changing hands. Even if that hasn’t reached its daily average trading volume of about 47 million shares.
NIO stock is up 2.3% as of Wednesday morning.
Investors on the lookout for more recent stock market news are in the right place!
That’s because InvestorPlace has them covered with all the latest stock news they need to know about. A few examples for Wednesday include what to know about Fresh Vine Wine (NYSEAMERICAN:VINE), why Chinese tech stocks are rising, as well as what has Jaguar Health (NASDAQ:JAGX) on the move. You can get all that news from the links below!
More Stock Market News for Wednesday
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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.