NIO receives regulatory approval for third plant in mainland China

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Policy & Regulation
ATI News Team

The upcoming F3 plant will have annual production capacity of 100,000 units initially, which will eventually expand to 600,000 units

Electric-vehicle startup NIO has received approval to establish a manufacturing plant in mainland China, Reuters reported June 5. The company has started construction work at its third plant, known as F3, in Huainan city, in Anhui Province. 

The plant will have annual production capacity of 100,000 units initially, which will eventually expand to 600,000 units. It is expected to produce EVs which will be sold under Onvo, the affordable car brand NIO launched last month.

The approval for new plant is a big win for NIO. The Chinese government has been cautious in approving new EV production plans since 2022 amid growing concern about overcapacity and slowing demand. Although the eighth largest EV manufacturer in mainland China, NIO received approval to manufacture vehicles in the country in 2023.

The latest approval will help NIO increase its total production capacity to 1 million cars, almost at par with Tesla’s Shanghai Gigafactory. The US electric carmaker can produce 1.1 million EVs annually at its biggest Gigafactory.

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