Chinese EV producer Nio invests in a nuclear fusion startup. According to a source with direct information and a corporate filing, Chinese electric vehicle producer Nio (9866. HK) has invested in a startup developing fusion technologies, expanding its energy sector ambitions.
The insider added Neo Fusion, a new company, will develop technology to commercialize controlled fusion in 20 years.
According to the company registration file reviewed by Reuters, Neo Fusion is 50% held by China’s eastern province of Anhui government-owned energy companies and investment arms.
It showed that Nio invested 995 million yuan for 19.9%, and Nio Capital, created by Nio’s CEO William Li, invested 505 million for 10.1%.
“Staying true to the original aspiration of Blue Sky Coming, Nio aims to facilitate the R&D and commercialization of nuclear fusion technology by making financial investment into this project,” Nio told Reuters on Friday. It plans to attract more strategic and financial investors in phases.
Nio Capital and Anhui’s State-owned Assets Supervision and Administration Commission did not respond to inquiries.
Fusion may reduce climate change emissions. This is because it generates power without radioactive waste, unlike fission reactors.
Recent technological developments have moved it closer to reality, prompting a global investment frenzy by firms and governments, including the US, Japan, and China, to dominate the next generation of energy technology.
Nio’s investment showed the loss-making EV maker’s power and energy ambitions.
Nio claims that battery swapping stations power EVs faster and increase grid stability.
Reuters claimed it is developing battery technologies and intends to establish a 40-gigawatt-hour battery facility in Hefei, Anhui province.
