Investing.com - Electric vehicle manufacturer Nio (NYSE:NIO) is backing a newly established startup called Neo Fusion, which aims to develop and bring controlled fusion technologies to the global market within twenty years. According to sources familiar with the matter and company filings, this investment marks another move by Nio into various segments of the energy sector.
Neo Fusion has an initial capital of $723.37 million (5 billion yuan) and is half-owned by government-affiliated energy firms from China's Anhui province. As per financial details disclosed in registration documents, Nio invested nearly $144 million (995 million yuan), securing a 19.9% stake in the company; while its CEO-founded investment firm Nio Capital contributed over $77 million (505 million yuan) for a 10.1% share.
The electric carmaker stated that their involvement supports research, development, and commercialization efforts around nuclear fusion technology as part of their Blue Sky Coming initiative. The project also plans on attracting additional strategic investors at different stages.
Nuclear fusion could potentially help curb climate change-related emissions globally since it generates power without producing long-lasting radioactive waste like current fission reactors do. Recent technological breakthroughs have brought this clean-energy source closer to reality, leading various governments and companies worldwide—including those from China—to invest heavily in developing next-gen energy solutions.
This latest venture highlights not just Nio's growing ambitions but also its commitment towards expanding battery-swapping capabilities as an alternative solution for EV charging infrastructure improvements and grid stability enhancement efforts across China's power system landscape