Electric vehicle (EV) maker Nio announced on Friday that it has formed a joint venture with its major investor, Abu Dhabi-based CYVN Holdings, named Nio MENA, aimed at expanding into the Middle East and North Africa (MENA).
The partnership will enable Nio to introduce its electric vehicle lineup, including models from its sub-brands Onvo and Firefly to the region. Nio plans to establish local production, marking its first manufacturing facility outside China.
Nio’s founder and CEO William Li signed a memorandum of understanding on Friday, cementing the joint venture with CYVN Holdings, which owns about 20 percent of nio.
Here’s a video of the signing ceremony shared by a local media outlet.
As reported earlier this week, Nio’s entry into the MENA region will begin with the United Arab Emirates (UAE), where the company is planning a launch event for October 22 in Abu Dhabi.
In North Africa, Nio will begin operations in Egypt, following a similar move by Guangzhou-based EV maker XPeng, which entered the Egyptian market in June.
Beyond market expansion, Nio and CYVN Holdings plan to establish a research and development (R&D) center in Abu Dhabi, focusing on autonomous driving and artificial intelligence technologies, the company said in a statement.
The collaboration will also extend to a new electric vehicle project, involving research, manufacturing, and future product launches.
The first showroom will be located at the Galleria Al Maryah Island in Abu Dhabi, with the region’s first battery swap station planned next to the Yas Marina Formula 1 Circuit.
In December 2023, Nio secured a $2.2 billion investment from CYVN Holdings, raising the investor’s stake to 20.1% of the company’s total shares.
This followed a $738.5 million investment made by CYVN in July, bringing their total investment in Nio to approximately $3 billion.
Last week, the company said it has secured 3.3 billion yuan (approximately $470 million) from a group of investors for its Nio China subsidiary.
The new investment comes from a group of strategic investors, including Hefei Jianheng New Energy Automobile Investment Fund Partnership, Anhui Provincial Emerging Industry Investment Co., Ltd., and CS Capital Co., Ltd.
