Chinese EV Maker Nio Invests in Nuclear Fusion Startup

Chinese EV Maker Nio Invests in Nuclear Fusion Startup

Nio, the Chinese electric vehicle manufacturer, has reportedly invested in a fusion technology startup, as revealed by a source familiar with the matter and a company filing. This move reflects Nio's expanding interests in diverse energy sectors.


According to the source, Neo Fusion, a recently established company, will focus on researching and developing technologies with the goal of achieving commercial applications of controlled fusion worldwide within the next two decades.

Neo Fusion is 50% held by government-owned energy and investment organizations in China's eastern province of Anhui, according to financial information in the business registration application obtained by Reuters. Neo Fusion has a registration capital of 5 billion yuan ($723.37 million).

According to the data, Nio Capital, the investment company created by Nio's chief executive William Li, invested 505 million yuan for a 10.1% stake while Nio invested 995 million yuan for a 19.9% interest.

In a statement provided to Reuters on Friday, Nio expressed its commitment to the original vision of Blue Sky Coming and its goal of advancing the research, development, and commercialization of nuclear fusion technology. Nio plans to make financial investments into the project and aims to attract additional strategic and financial investors in stages, according to the statement.

Requests for comment from Nio Capital and the State-owned Assets Supervision and Administration Commission of Anhui were not immediately heeded.

Fusion is expected to one day enable the global reduction of emissions related to climate change. It can provide power without creating radioactive waste that will last for a very long time, unlike current fission reactors.

Recent technological advancements have brought the realization of fusion energy closer to becoming a reality. This has resulted in a surge of investments by companies and governments worldwide, including the United States, Japan, and China, as they strive to lead the next era of energy technology.

Nio's investment further emphasizes the electric vehicle (EV) manufacturer's aspirations in the power and energy sector, despite currently operating at a loss.

Although battery swapping stations have faced criticism for their perceived high costs, Nio argues that this approach offers a faster solution for charging EVs while also serving as an energy storage facility to enhance grid stability.

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