NIO announced on Friday that signed a cooperation agreement with the People’s Government of Lu’an City (Anhui Province, China) to build an intelligent electric vehicle parts supporting industrial park and cooperate in industry exchanges and talent interaction.
NIO’s CEO William Li commented the post saying “Hero’s Lu’an, for the development of low-carbon and sustainable industries -Power up!”. The first phase of the park is planned to be completed and put into operation in the first half of 2023, the EV maker said.
The intelligent electric vehicle parts supporting industrial park in the Lu’an Economic Development Zone is positioned as a high-end aluminum die-casting low-carbon circular industrial park. The two partners practice the goal of “double carbon” and are committed to building it into a pilot demonstration park of the national circular economy that will be tested first. The first phase of the park is planned to cover an area of about 900 acres. It will introduce parts supporting enterprises such as refined dismantling of vehicles, recycling of aluminum and other materials, smelting of aluminum materials, aluminum die-casting and wheel hub manufacturing, and build a whole industry chain of low-carbon aluminum die-casting.
The first phase of the park is planned to be completed and put into operation in the first half of 2023. At that time, it will have an annual output capacity of 300,000 tons of aluminum die-casting, with an estimated annual output value of 10 billion yuan. After the first phase is completed and put into operation, NIO vehicle aluminum die-casting products will reduce carbon emissions by about 50%.
As the co-builder of the park, we continue to promote the settlement of aluminum die-casting circular industrial chain enterprises in Lu’an. The construction of the park will also further promote the landing of NIO’s supply chain near-localization strategy. At the signing ceremony, five of the first batch of partners to settle in the park signed landing agreements with Lu’an Economic Development Zone.
Earlier today, Citi analyst Jeff Chung commented NIO‘s Q1 2022 financial results saying that they were “neutral to slightly positive” and enhancing the strong June sales guidance that the company gave. The analyst expects NIO to deliver more than 40,000 vehicles in the third quarter which would represent a new record for the company and an average monthly pace of 13,333 units delivered.
Earlier this week, NIO surpassed the U.S.-based Lucid Motors in Market cap becoming the third biggest EV maker after Tesla and BYD. On Monday, NIO stock opened higher at $18.99 and immediately saw buy pressure gapping up to a new 6-weeks high of $19.80 resulting in a Market Cap value of $31.482 billion. In parallel, Lucid stock went down to $18.80 per share which, considering the 1.67 billion shares outstanding, results in a market cap value of $31.412 billion.
NIO will hold a conference to officially launch the new SUV model NIO ES7 on June 15, at 20:00 in Shanghai timezone. The company will start receiving reservations on the evening of the conference and the orders will start to be locked in July with the first deliveries expected as soon as the end of August.