Nio Inc is moving forward with its in-house large cylindrical battery cell project, with a small initial batch expected to be produced before the end of 2026. The company continues to balance internal battery research and development with expanded partnerships for manufacturing and supply.
Progress on In-House Cylindrical Cells
Nio is pressing ahead with its development of large cylindrical battery cells, despite previous delays. According to battery industry media outlet Jipian Lab, a very small batch of these in-house cells is expected to roll off production lines by the end of 2026.
The manufacturing of these cells will be handled by Eve Energy and Gotion High-tech. However, mass production remains a challenge in the near term, and no timeline has been provided for scaling up output.
Strategy: In-House R&D and Outsourced Manufacturing
Nio is maintaining its focus on core battery research and development while outsourcing manufacturing to external partners. This approach allows the company to advance its own technology while relying on established suppliers to support vehicle deliveries.
Nio founder, chairman and CEO William Li stated in a September media interview that the company has invested more than $299M (~AUD 425.5M) in battery research and development. Li emphasized that Nio’s in-house efforts are centered on long-life large cylindrical cells, combining internal R&D with contract manufacturing.
Evolving Battery Specifications and Partnerships
Nio’s battery strategy has shifted over recent years. In 2023, the company planned a battery factory with a 40 GWh annual capacity but later slowed equipment purchases and delayed mass production. During a December 2023 earnings call, Li said Nio would continue researching cells, materials, and battery packs, but would outsource production to manage costs.
At Nio Day in December 2023, the company unveiled its in-house 46105 large cylindrical cells, initially intended for a 120-kWh battery pack in the flagship ET9 executive sedan. These cells were announced with a 292 Wh/kg energy density and support for 5C fast charging. However, when the ET9 launched in December 2024, it used a 100-kWh battery pack with CATL prismatic cells instead.
Since then, Nio’s large cylindrical cell specifications have changed and are no longer limited to the 46105 format, meaning earlier specifications may not reflect the latest design. At a user event on August 7, Li said the 120-kWh battery pack is still under development and will be compatible with all Nio main-brand models, but did not provide a launch date.
Expanding Cooperation with CATL
Nio is increasing its purchases of prismatic batteries from CATL, with both the Onvo and Firefly brands now using CATL’s batteries. In January, Nio and CATL announced a five-year agreement to deepen their strategic partnership, focusing on the joint development of long-life batteries and technology to support battery swapping.
Firefly, one of Nio’s brands, introduced a 60-kWh battery pack on October 23. CATL confirmed the following day that this pack uses its Qilin Battery technology, delivering a CLTC range of 560 kilometers (~348 miles). Firefly’s existing 42-kWh battery is supplied by Sunwoda. The addition of CATL batteries further broadens cooperation between Nio’s brands and the major supplier.
Why this matters
Nio’s continued investment in in-house battery technology, alongside expanded partnerships with major suppliers like CATL, highlights the company’s dual approach to innovation and scalability. The progress on cylindrical cell development could impact future battery performance and cost structure for Nio vehicles.
The evolving battery strategy and supplier relationships are significant for the broader EV market, as they reflect ongoing efforts to balance proprietary technology development with reliable supply chains.
What this means for buyers
Buyers considering Nio vehicles can expect the company to continue leveraging both in-house and supplier battery technologies. While new in-house cylindrical cells are in development, current and upcoming models will benefit from established battery packs supplied by CATL and other partners.
Those interested in the latest battery advancements should monitor future announcements regarding the rollout of new battery packs and compatibility with Nio’s main-brand models.
Key Specs
- In-House Cylindrical Cell Production: Small batch expected by end of 2026
- Manufacturing Partners: Eve Energy, Gotion High-tech
- Nio Battery R&D Investment: $299M (~AUD 425.5M)
- CATL Partnership: Five-year agreement for joint battery development
- Firefly 60-kWh Battery Pack: CLTC range of 560 km (~348 miles), uses CATL Qilin Battery technology
- Firefly 42-kWh Battery Pack: Supplied by Sunwoda
Images sourced from: highstar.com
