Invest or over 600 million NIO to layout lithium mine project in Argentina

Nio plans to invest more than 600 million yuan in Australia-based ore mining company Greenwing Resources Ltd, according to media reports. With the financing, Greenwing will accelerate the development of its San Jorge lithium project in Argentina.

Nio ES8 2022 100kWh pilot version with six seats

According to public information, NIO's investment in Greenwing is divided into two parts: First, NIO will pay A $12 million (RMB 55,536,300) to subscribe for about 21.818,200 Greenwing shares at A $0.55 per share (placement). Upon completion of the subscription, NIO will own about 12.16% of Greenwing and one seat on the company's board of directors; Second, NIo will also receive a portion of the call option, which is expected to have an exercise price of $40 million to $80 million.

Nio's investment in Greenwing aims to accelerate the development of San Jorge lithium project in Argentina and become a priority customer of this project. Under the subscription agreement between the parties, Greenwing will provide NIO with a detailed specification of the San Jorge lithium project, with options available for NIO to exercise within one year. Nio's investment in Greenwing will exceed 600 million yuan, based on the price of the maximum exercise option. At least 80% of the proceeds from the Greenwing placement will be used for the San Jorge lithium project. If NIO exercises the call option, proceeds will also be used for outstanding option payments on the San Jorge lithium project.

Li Bin, chairman of NIO, has said that NIO's new mass-market branded products will carry its own batteries, with deliveries expected in the second half of 2024.