Shanghai (ZXZC)- NIO Capital recently said it will continue to support the B1 and B2 series financing rounds of the Chinese used car component supplier Yuan Planet, that are worth tens of millions of dollars, according to a press release from NIO Capital.

The proceeds raised from the fresh rounds are earmarked primarily for expanding Yuan Planet's disassembly plant operations and bolstering its R&D endeavors.

Photo credit: Yuan Planet

Yuan Planet operates on the foundation of automotive reuse components, remanufactured parts, and recycled automotive materials. Anchored by digitalization, it streamlines the comprehensive post-market service process for premium recycled components, leveraging its data-driven value discovery capabilities and standardized inspection protocols. This approach propels the seamless flow of industry information, giving rise to a cutting-edge pricing capability—one vehicle, one price; one component, one price. By establishing its own supply chain system and an extensive network of offline disassembly plants spanning the nation, Yuan Planet has achieved wide-ranging vehicle source coverage and significantly enhanced parts sales ratios and supply-demand matching efficiency.

Mr. Zhu Yan, Managing Partner at NIO Capital, expressed, "As pioneers in the automotive recycling domain, Yuan Planet has built a formidable competitive edge by consistently expanding its reach upstream and downstream. It has established a nationwide network of vehicle sources and pioneered the direct supply of remanufactured parts to insurance companies. We remain committed to supporting the company's growth."

In its journey of development over the past few years, Yuan Planet has efficiently standardized its disassembly plant model through a diverse range of collaboration initiatives. It has already set up disassembly plants in cities such as Zhaoqing, Chongqing, Changsha, Linfen, and Baoding. Its downstream repair shop clients are spread across the country, and in 2022, the company expanded to Malaysia, using it as a hub to connect sources from the United States, Europe, China, Dubai, Africa, and other regions, thereby constructing a global value discovery and circulation capability.

Furthermore, Yuan Planet has joined forces with leading insurance companies like Ping An to introduce direct supply insurance services for remanufactured automotive parts. It is actively involved in the redesign of auto insurance products.

In the realm of automotive materials, Yuan Planet has established a strategic partnership with Aluminum Corporation of China to secure a long-term supply of recycled aluminum raw materials.

Yuan Planet has demonstrated foresight in recognizing the gradual rise in demand for electric vehicle recycling. It has, therefore, joined hands with NIO, leading to the establishment of a new energy vehicle disassembly laboratory. Their involvement spans critical aspects of electric vehicle recycling, including detailed disassembly, the preservation and reuse of materials, and precision remanufacturing of components.