The framework agreement signed by Nio and the two automotive giants headquartered in Anhui province earlier this month was a preliminary direction, with specific plans still under negotiation.
Citing sources, the information was first reported by Yuan News, the finance news division of the province’s newspaper Anhui Daily.
Chery Automobile, JAC Motors, and Nio signed on January 6 the “Framework Agreement on Jointly Building a Collaborative Innovation Platform for the Development of the Automotive Industry” at Nio’s one-millionth vehicle ceremony in Hefei.
The agreement covers technology co-creation and reuse mechanisms, supply chain management collaboration, human resource sharing, and innovation tool resource co-construction.
By reducing overall costs through technological innovation, large-scale procurement, and improved human resource efficiency, the collaboration has the potential to reconstruct a new value chain where each link can obtain reasonable profits and interests are distributed in an orderly manner, Yuan News reported.
The cooperation began at a special provincial government meeting at the end of last year attended by Chery Chairman Yin Tongyue, Nio founder and CEO William Li, and JAC Chairman Xiang Xingchu — Yuan News reported.
Three Key Principles
While details remain under discussion, several points are certain, according to sources cited by the local newspaper.
While currently initiated by the three automakers, companies across the industry chain can join in the future, and participation is not limited to Anhui-based firms.
Second, the agreement is market-based. All collaborative innovation mechanisms must be designed based on market logic.
Third, the three automakers and relevant parties plan to establish a platform operating company to ensure the practical implementation of their collaborative initiatives.
“It’s not very meaningful for everyone to do the same thing repeatedly,” an automotive industry insider told Yuan News. “We can collaborate strategically, in development and innovation, and in the supply chain.”
Price War Concerns
The fierce price wars among Chinese automakers are a shared concern for the three executives, according to Yuan News.
They believe infighting will affect the health of the supply chain and damage the ecosystem, ultimately backfiring on the brand power of Chinese automakers.
JAC’s Xiang Xingchu described the evolving relationship between automakers and suppliers. “I can’t live without you, and you can’t live without me; the value chain empowers each other,” Xingchu stated.
Anhui’s Auto Strength
The three companies are pillars of Anhui’s automotive industry. All Nio‘s three EV plants are located in Hefei, a city of Anhui Province.
According to 2025 rankings of listed automakers by market capitalization, Chery ($23.0 billion), JAC ($15.5 billion), and Nio ($11.5 billion) all rank among the top 40 global automakers at 24th, 31st, and 32nd respectively.
Data released by the National Bureau of Statistics on January 22 showed Anhui produced 3.69 million vehicles and 1.79 million new energy vehicles in 2025 — both figures ranking first nationally.
Anhui also became the first province to export more than one million vehicles annually.
The province exported 1.23 million vehicles in 2025, up 28.7% year-over-year, with export volume ranking first in China.
3 Partnerships in 1 Day
The Chery-JAC agreement was one of three partnerships Nio announced on January 6.
The company also signed a five-year strategic cooperation agreement with its investor and the world’s largest battery manufacturer, Contemporary Amperex Technology Limited (CATL).
The deal deepens a relationship that began when CATL supplied batteries for Nio‘s first vehicle in 2018 and expanded in March when CATL invested up to 2.5 billion yuan ($300 million) in Nio’s energy unit — known as Nio Power.
Separately, Nio signed a vehicle-chip industrialization partnership with Hefei-headquartered Lontium Semiconductor Corp., sending Lontium shares to an eight-month high.
JAC History
The agreement marks a new chapter in Nio‘s relationship with JAC, the state-owned automaker that served as Nio’s contract manufacturer for years.
The EV maker initially lacked its own vehicle manufacturing qualification and produced vehicles under JAC’s name through a joint venture established in March 2021.
In late 2023, Nio acquired selected fixed assets and equipment from the two JAC plants for 3.16 billion yuan ($441 million) after obtaining independent manufacturing qualification.
In mid-2025, Nio dissolved the joint venture as the EV maker shifted toward fully independent production.
Chery Battery Swap Partnership
Nio and Chery announced a battery swap partnership in early 2024 as part of Nio‘s battery swap alliance. A year ago, several local media reported that Chery’s sub-brand Exeed was set to launch battery swap-enabled models in the third quarter of 2025.
As of January 25, no Exeed models featuring Nio‘s battery swap technology had been released.
Nio is soon unveiling its latest generation of stations, which are expected to be capable of serving external brands.
Chery’s 2026 Targets
Chery Group announced a 2026 sales target of 3.2 million vehicles, up 14% from 2025. Chery Automobile, together with its five brands, is targeting 3 million vehicles.
Chery Automobile‘s cumulative sales in 2025 reached 2.63 million vehicles, up 8% from 2.44 million units in 2024.
The main marque Chery sold 1.7 million vehicles (+6% YoY), Omoda and Jaecoo registered 622,590 (+10%), and Exeed 120,369 (-15%).
The iCAR brand sold 96,989 (+47%), and Luxeed recorded 90,493 (+56%).
