BUSINESS

Standardize EV Batteries, Chips to Help Carmakers Profit, Nio Chief Says

Published: Apr. 13, 2026 3:53 p.m. GMT+8

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Nio Inc. CEO William Li. Photo: VCG

Nio Inc. Chairman and CEO William Li has called for the standardization of battery cells and automotive chips to help automakers survive a profitability crisis driven by increasingly short lifecycles for new electric vehicles.

The appeal underscores the severe financial strain on the fiercely competitive new-energy vehicle sector, where rapid technological iteration has shrunk a new model’s prime sales window to less than a year, creating supply-demand mismatches that bleed cash from manufacturers and suppliers.

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Nio CEO William Li calls for standardizing battery cells and chips to address EV profitability crisis from short model lifecycles (<1 year vs. 5-7 years for ICE cars).
Rapid iteration causes supply-demand mismatches, excess capacity; batteries/chips >50% of vehicle cost.
Proposes 4-5 battery specs, fewer chip types (Nio ES9: >4,000 chips, >1,000 types); could save >100B yuan/year.

AI generated, for reference only

Who’s Who

Nio Inc.: Nio Inc. Chairman and CEO William Li urged standardizing battery cells (to 4-5 specs) and automotive chips to combat EV profitability crisis from short model lifecycles (<1 year peak sales). Nio's ES9 uses >4,000 chips across >1,000 types. Standardization could save industry >100 billion yuan yearly by reducing mismatches and costs.

AI generated, for reference only