Chinese electric-car builder Nio has signed a deal to license its technology to Forseven, a unit of Abu Dhabi government fund CYVN Holdings, in the latest sign of China’s increasing influence in the global electric vehicle (EV) industry, reports the South China Morning Post. Shanghai-based Nio, via its subsidiary Nio Technology (Anhui), allows Forseven, an EV start-up, to use Nio’s technical information, know-how, software and intellectual property for the research and development, manufacturing and distribution of vehicles, Nio said in a filing to the Hong Kong stock exchange on Monday evening.
Nio’s subsidiary will receive technology licensing fees comprising a non-refundable, fixed upfront payment on top of royalties determined based on Forseven’s future sales of licensed products, the filing said. It did not elaborate on details of the products Forseven plans to develop.
“The deal once again proves that Chinese companies are leading the transition of the global automotive industry into the EV era,” said Eric Han, a senior manager at Suolei, an advisory firm in Shanghai. “It also creates a new revenue source for Nio, which needs increasing cash inflow to turn profitable.”