Shanghai (ZXZC)- Chinese EV startup NIO has increased its stake in Jianglai Advanced Manufacturing Technology (Anhui) Co., Ltd. (“Jianglai”), the joint venture it builds with Anhui Jianghuai Automobile Group Co., Ltd. (“JAC Group”), a year after Jianglai was established.

According to the corporate database Qichacha, Jianglai is currently 50/50 held by NIO and JAC Group after the latter transferred the 1% stake in the joint venture to the former.

The recent move indicates that NIO is trying to grasp more controlling right over the joint venture.

Meanwhile, the registered capital of Jianglai has increased by 4.08% to 255 million yuan ($40.094 million). Its business scope has also been significantly expanded by embracing such new businesses as production line management service, business training, and human resource service.

NIO China's headquarters; photo credit: NIO

In early March of 2021, NIO and JAC Group signed a letter of intent to found a joint venture in Hefei, where NIO China is headquartered. Under the letter of intent, both parties intend to deepen their cooperation on advanced manufacturing, management of services and supply chain related to intelligent-connected new energy vehicles.

Incorporated on March 31, 2021, the joint venture, namely, Jianglai, was initially 51/49 held by JAC Group and NIO.

In May last year, NIO announced that it had entered into manufacturing agreements with JAC Group and Jianglai, regarding the joint manufacturing of NIO vehicles and related fee arrangements. Under the agreement, JAC would continue to manufacture the ES8, ES6, EC6, ET7 and potentially other NIO models in the pipeline for another five years (from May 2021 to May 2024). Jianglai would be responsible for parts assembly and operation management.