NIO Inc. ( NIO ) shares are climbing higher after starting Friday down.

China FAW, formerly China First Automobile Works, is reportedly set to join the battery swap alliance led by Nio, becoming the seventh member following GAC Group, Changan Automobile, Geely Holding, Chery, JAC and Lotus, CnEV Post reported, citing local media Cailian.

The battery swap alliance, including Nio, currently consists of seven members, with plans for additional brands to join in the future, as stated by Nio’s founder, chairman, and CEO William Li, in the report.

Li, envisioning the battery swap as a cloud service, is contemplating its future beyond the premium segment, considering its potential within the broader market landscape, CnEV Post added.

Nio aims to increase its battery swap stations by 1,000 this year, totaling 2,416 stations in China. Li envisions over 10,000 stations with alliance growth, supporting 10 million vehicles. 

On Nov. 21, 2023, Nio and Changan entered a partnership to jointly build and share a battery swap network, with Changan becoming the inaugural external member of Nio’s battery swap alliance, according to CnEV Post.

NIO Price Action: Nio shares are trading up 1.62% to $5.35 at last check Friday. 

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

Read Next: What’s Going On With Chinese EV Maker XPeng Stock Today?