© Financial Eye Nio (NIO) to Invest $32.8M Building R&D Labs in Shanghai
By Michael Elkins
A recent report by CnEVPost shows that the electric vehicle company, Nio (NYSE:) is planning to invest $32.8 million to build lithium-ion battery labs and a cell pilot production line in Shanghai.
Citing an environmental assessment report, CnEVPost says that the electric vehicle company will build 31 R&D labs engaged in lithium-ion cell and battery pack research and development as part of a new R&D project in Anting town, Jiading district. Along with the labs, Nio is planning to build a lithium-ion cell pilot line and a battery pack production line.
The report suggests that the “R&D labs will explore the charge and discharge performance, temperature performance, and safety performance of lithium-ion cells and packs under different physical experimental conditions such as temperature, tension, humidity.” While the production and battery pack line conducts trial production of lithium-ion cells and battery packs.
“NIO continues to grow in revenue but its expenses continue to pile on. The company’s expansion plans will likely also impact profitability in the future, ” suggests, Sandeep Rao, a Seeking Alpha analyst on the stock.