Nio and Svolt Energy will jointly invest in a pilot production line in Anhui province, and some of their R&D staff will be merged, according to local media.

Svolt Energy is one of the largest battery makers in China, with 0.79 GWh of batteries installed in August, ranking 6th in the country with a 2.26 percent share, according to China Automotive Battery Innovation Alliance (CABIA).

The battery maker announced the Dragon Armor Battery late last year, which it said can give vehicles a range of up to 1,000 kilometers.

Like BYD's Blade Battery and CATL's Qilin Battery, Svolt Energy's Dragon Armor is an innovation in the structure of the battery pack without involving battery chemistry.

Dragon Armor battery systems with lithium iron phosphate cells can achieve a range of more than 800 kilometers, while such batteries with ternary cells can have a range of more than 1,000 kilometers, Svolt Energy said at the time.

Nio reportedly delays mass production plans for in-house developed batteries