NIO will begin building a dedicated battery R&D base in Shanghai during the second half of 2026. A government-affiliated publication reported the plans on Tuesday.

The facility will focus on developing next-generation power batteries. The site will feature 31 lithium battery testing labs. It also includes a pilot line for lithium-ion cells and a battery pack assembly line.

The project centralizes R&D in Shanghai while manufacturing remains in Anhui province. This investment aims to boost long-term competitiveness through proprietary technology.

NIO shares rose 2% in Hong Kong on Tuesday. This follows a 5% jump in its U.S.-listed shares on Monday.