BUSINESS

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

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

00:00

00:00/00:00

Listen to this article 1x

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.

You've accessed an article available only to subscribers

Subscribe today for just $.99.

VIEW OPTIONS

Unlock exclusive discounts with a Caixin group subscription — ideal for teams and organizations.

Subscribe to both Caixin Global and The Wall Street Journal — for the price of one.

Share this article

Open WeChat and scan the QR code

DIGEST HUB

Digest Hub

Back

Explore the story in 30 seconds

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