NIO’s (NYSE: NIO) share price is trading slightly higher premarket on Monday after the company announced it has renewed manufacturing agreements with Jianghuai Automobile Group (JAC) and Jianglai Advanced Manufacturing Technology (Anhui).
JAC is a state-owned vehicle manufacturer in China that currently manufactures the ES8, ES6 and EC6, in the Hefei JAC-NIO manufacturing plant.
Jianglai is a joint venture established or operation management by JAC and NIO, with NIO holding a 49% equity interest.
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The agreement will see JAC continue to manufacture the ES8, ES6, EC6, ET7 and potentially other NIO models in the pipeline.
NIO said JAC will expand its annual production capacity to 240,000 units to meet the growing demand for its vehicles.
NIO will control vehicle development and engineering, supply chain management, manufacturing techniques, and quality management and assurance. Jianglai will be responsible for parts assembly and operation management.
NIO’s share price is up 1% at $34.40 premarket.
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