Nio (NYSE:NIO) stock is in the red today, although a positive catalyst is just around the corner. On Oct. 7, the Chinese electric vehicle (EV) company will host Nio Berlin 2022, which is expected to be the European version of Nio Day. The event will carry the theme “A New Horizon,” which CEO William Li explains is about “exploring new possibilities in our life.”
Earlier this week, it was announced that Nio would purchase a 12% stake in lithium company Greenwing Resources. The EV company agreed to pay $12 million in exchange for 21.81 million shares of Greenwing at a price of 55 cents per share. Nio will also receive call options to acquire between 20% and 40% ownership of Andes Litio. Andes owns the rights to Argentina’s San Jorge lithium project. Greenwing will use at least 80% of the proceeds towards lithium exploration in the San Jorge project and other working capital costs.
Nio’s Greenwing stake is a move to acquire a key component of EV batteries in a year that has been plagued with supply chain inefficiencies. With that in mind, let’s get into the details of Nio Berlin 2022.
NIO Stock: Nio’s Plans for Nio Berlin 2022
On Oct. 7, Nio will unveil its ET5, ET7, and ES7 models in Europe. All three models utilize the NT 2.0 platform. In a phone interview earlier this month, President Qin Lihong hinted that further models may be launched in Europe later. Lihong and Li are currently on a 10-day road trip across Europe to share company developments.
The company is quickly expanding into European countries. By 2025, Nio plans on building 1,000 battery swap stations outside of China, with the majority of them in Europe. Lihong added:
We are comprehensively ahead of our competitors in terms of products and services. It’s true there will be more EV models to be launched in Europe in three years, but we are also making more progress.
Nio first expanded into foreign markets last May when it began selling EVs in Norway. This year, the automaker will expand into Germany, Sweden, Denmark, and the Netherlands. Battery leasing and swapping centers are already active in Norway for the ES8, with two stations currently active. Furthermore, Hungary was the recipient of Nio’s first overseas power plant earlier this month. The plant will be used to make products like battery swapping stations, reducing shipping costs when compared to shipped products from China.
On the date of publication, Eddie Pan did not hold (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.