NIO Inc. (NYSE: NIO) is announcing the beginning of construction of NeoPark, a smart electric vehicle industry park it is co-developing with the Hefei government, ahead of the Chinese automaker’s quarterly earnings release after the close Thursday.
What Happened: Work on NeoPark has kicked off, Nio said in a Thursday press release.
The opening ceremony was attended by several officials from Anhui province, where Hefei is located, as well as William Li, Nio’s founder, chairman and CEO.
Nio’s China headquarters are situated in Hefei. The collaboration agreement with the Hefei municipal government for NeoPark was signed in early February.
NeoPark is conceived as a smart EV industry cluster, encompassing R&D of vehicles, core parts and components and autonomous driving. It was envisioned to evolve as a pioneering innovation chain with global competitiveness and a hub for hundreds of key supporting industries and a highly clustered, full-fledged industry chain, the company said.
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The 16,950-acre park features three main function areas — smart manufacturing, R&D and living space, and Eco park. NeoPark will likely contribute to peaking carbon emissions and achieving carbon neutrality, according to the company.
The park, according to company, will accommodate over 10,000 R&D personnel and 40,000 technical workers. It’s expected to have an annual production capacity of 1 million vehicles and 100 GWh. The annual gross output from the park is expected to reach 500 billion yuan ($77.3 billion).
Why It’s Important: Nio has embarked on a broad push to drive volumes as it comes up against fierce competition in a crowded EV market. The company has announced innovation in battery technology, charging infrastructure and services, while also announcing new models.
The company confirmed Wednesday that it is setting up operations in Norway, terming it as the first leg of its international expansion.
The investment in Neo Park is also seen as a payback from Nio to the Hefei city, which bailed it out with financial assistance when the company was running out of cash in 2019.
NIO Price Action: Nio shares were down 3.8% at $39.62 at last check.
Related Link: Nio Working On Lower-Priced Model With Lithium Iron Phosphate Battery: Report
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