Recently, media reported that NIO plans to invest in Greenwing Resources Ltd, an Australian-based ore mining company, with the amount of this investment possibly exceeding $600 million. After the financing, Greenwing will accelerate the development of its San Jorge lithium project in Argentina.
According to public sources, NIO’s investment in Greenwing is divided into two parts: firstly, NIO will pay A$12 million (approximately RMB 55,356,300) to subscribe for approximately 21,818,200 shares of Greenwing at a subscription price of A$0.55 per share (placement). Upon completion of the subscription, NIO will hold approximately 12.16% of Greenwing’s shares and take a seat on the company’s board of directors; second, NIO will also receive a partial call option, the exercise price of which is expected to be between $40 million and $80 million (approximately RMB 289 million to 578 million).
NIO’s investment in Greenwing is intended to accelerate the development of the San Jorge lithium project in Argentina and to become a customer of the project on a priority basis. Under the subscription agreement, Greenwing will provide NIO with a detailed specification of the San Jorge lithium project and NIO will have one year to exercise the option. Based on the maximum option exercise price, NIO’s investment in Greenwing will exceed $600 million. At least 80% of the proceeds from the Greenwing placement will be used for the San Jorge lithium project. If NIO exercises the call option, the proceeds will also be used for outstanding option payments on the San Jorge lithium project.
NIO Chairman Li Bin has said that its new branded products for the mass market will be equipped with its own production of batteries, with deliveries expected to take place in the second half of 2024.