Shares of Chinese electric vehicle maker NIO (NYSE: NIO) were moving higher on Friday, after the company’s CEO confirmed that its manufacturing partner has begun construction of a second factory near NIO’s headquarters in the industrial city of Hefei.
As of 1:45 p.m. EDT, NIO’s American depositary shares were up about 7% from Thursday’s closing price.
NIO’s founder and CEO, William Li, shared some business updates at an event for NIO owners in China on Thursday, according to multiple reports in Chinese business media.
Of particular note to investors, Li confirmed that construction is now underway on NIO’s second factory. The plant, which will be operated by NIO’s manufacturing partner, state-owned automaker Jianghuai Automobile Group, is being built in a new “Neo Park” in the city of Hefei.
NIO agreed to help build and lead the Neo Park, which will (it is hoped) help make Hefei a center for electric-vehicle expertise and manufacturing, as part of a bailout deal with economic development authorities last year.
The new factory is expected to begin production in the third quarter of 2022, Li said. Once it’s up and running, it’ll increase NIO’s available production capacity to about 20,000 vehicles per month from a maximum of 10,000 now.
Separately, NIO said on Friday morning that it has completed the approval process required to sell its flagship ES8 electric SUV in the European Union, according to a report by CnEVPost.
NIO said last month that it is aiming to begin deliveries of the ES8, an upscale “three-row” electric crossover, in Norway in September. Its upcoming ET7 sedan will follow once it’s launched, likely early next year.
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