NIO Inc. ( NIO ) shares are trading lower in the premarket session on Thursday.

The company signed an agreement with battery giant CATL on a partnership to develop batteries with longer life to decline overall EV charges, Reuters reported.

Last month, China’s leading battery and car manufacturers, including CATL and BYD Co. ( BYDDF ), Ltd. (OTC:BYDDY), came together to develop solid-state batteries, a technology that could revolutionize the electric vehicle (EV) market.

The latest partnership between Nio and CATL will utilize battery technologies from both companies to reduce “full life circle” costs, which is crucial for Nio’s numerous battery swapping and charging stations, as stated by William Li, Nio’s CEO, in Beijing.

Li expressed the aim to prolong battery lifespan beyond eight or ten years, Reuters added. 

Additionally, Nio revealed a reduction in monthly battery rental fees by up to 33%, potentially slashing EV purchase costs by 128,000 yuan ($17,795.82).

In the recently reported fourth quarter, Nio’s vehicle deliveries were 50,045, up by 25% year over year. Consequently, vehicle revenue climbed 4.6% year over year.

The company guided deliveries of 31,000 – 33,000 units for the first quarter, or (0.1)% – 6.3% Y/Y. 

The company expects first-quarter revenue of $1.48 billion – $1.56 billion, representing (1.7)% – 3.8% Y/Y growth and below the consensus of $2.28 billion.

Price Action: NIO shares are trading lower by 0.51% to $5.89 premarket on the last check Thursday.