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EV maker Nio Inc. has announced that it has entered into definitive agreements for investments in Nio China with a group of investors. The investors – who include Hefei City Construction and Investment Holding (Group) Co. – will invest an aggregate of RMB7 billion ($989 million).

Nio will inject its core businesses and assets in China, including vehicle research and development, supply chain, sales and services into the new entity.

Upon the completion of the investments, Nio will hold 75.9% of controlling equity interests in NIO China, and the strategic investors will collectively hold the remaining 24.1%.

In  a press statement, Nio said: ‘The investment is another important milestone of NIO for its long-term growth. After receiving the investments from the Strategic Investors, NIO will have more sufficient funds to support its business development, to enhance its leadership in the products and technologies of smart electric vehicles and to offer services exceeding users’ expectation.’

It added: ‘Additionally, the Company believes the launch of Nio China headquarters in Hefei enables Nio to improve its operational efficiency and to sustain its growth and competitiveness in the long run.’

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Nio China will establish its headquarters in the Hefei Economic and Technological Development Area (HETA), where the company’s main manufacturing hub is located.

Founded in November 2014, Nio’s mission is to shape a joyful lifestyle by offering premium smart electric vehicles and being the best user enterprise. Nio designs, jointly manufactures, and sells smart and connected premium electric vehicles, driving innovations in next generation technologies in connectivity, autonomous driving and artificial intelligence.

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