Zhejiang Geely Holding Group will acquire a 30 percent stake in rival Nio’s battery-swapping and charging unit, NIO Power, the companies announced Monday, September 28. The deal values NIO Power at 16 billion yuan, about $2.4 billion — more than a quarter of Nio’s roughly $9 billion market value.

Geely will pay 640 million yuan, about $95 million, in cash. It will also contribute its entire equity interest in its commercial-vehicle battery-swapping subsidiary, Yiyi Power. Nio will retain 63.6 percent of the unit, with an existing investor holding 6.4 percent. Geely’s stake is tied to operational milestones and could be reduced to no less than 20 percent if NIO Power underperforms.

NIO Power has built more than 4,000 battery-swap stations, where drivers can swap a depleted battery in about three minutes, and targets 10,000 stations by 2030. The two companies are in preliminary talks for Geely to adopt Nio’s battery-swapping technology across its consumer vehicle models and commercial mobility businesses.

Nio CEO William Li said the charging and battery-swapping collaboration is open to the broader industry. Portfolio manager Leonid Mironov of Gavekal Capital called the deal “win-win,” noting Nio needs the money and greater usage. Nio shares rose as much as 3.2 percent in Hong Kong trading on Monday, while Geely’s stock gained as much as 3 percent.