U.S.-listed shares of NIO (NIO) advanced Tuesday when the electric vehicle (EV) maker and the world's biggest battery manufacturer, Contemporary Amperex Technology, or CATL, agreed to develop a battery swapping network across China to help drivers avoid recharging slowdowns.

NIO said the deal between the two China-based firms would benefit passenger vehicles over a wide range of products, "unifying industry technical standards, enhancing capital and business collaboration, and providing efficient recharging solutions for users." It added that the collaboration will "create the largest and most advanced battery swapping service network for passenger vehicles, leveraging their respective strengths in technology, management, platforms, and brand influence."

Batter🅘y swapping al🎃lows EV drivers to switch out their depleted battery for a fully charged one, eliminating the need to spend time at a charging station.

In addition, NIO and CATL pla꧟n to pur🎃sue capital cooperation. Financial considerations were not disclosed.

NIO CEO Calls Agreement 'Pivotal Moment' for Battery Swapping

NIO CEO William Li called the agreement "a pivotal moment" that will propel battery swapping "into a brand-new phase." Li explained that by working with CATL, "NIO's swapping network will extend to more regions and provide better services" and facilitates "mutual empowerment in technological standards and service systems."

NIO noted that it continues to expand its power swap network, anticipating that by the end of the year, it will cover "more than 2,300 county-level divisions in 27 provincial-level administrative regions."

U.S.-listed🐭 shares of NIO, which pared gains immediately after the opening bell and recently advanced 1.5%, are down nearly 10% over the last year.