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JAKARTA - China's electric car company, Nio, has invested in a startup company that is developing fusion technology, thus making further bets in the energy sector. This is known according to sources in the company.

According to the source, quoted by Reuters, the newly established company, Neo Fusion, will conduct research and development of technology aimed at bringing in controlled fusion for global commercial use in two decades.

With a registration capital of 5 billion yuan (IDR 10.8 trillion), Neo Fusion is controlled 50% by energy companies owned by the provincial government of Anhui, China, and investment companies, according to financial details in the company registration filing seen by Reuters.

Nio has invested 995 million yuan for 19.9% ownership, while Nio Capital, the investment company founded by CEO Nio William Li, invested 505 million yuan for 10.1% ownership, the filing shows.

"By remaining loyal to Blue Sky Coming's initial aspirations, Nio aims to facilitate research and commercialization of nuclear fusion technologies by making financial investments in this project," which plans to gradually attract more strategic and financial investors, Nio said in a statement to Reuters on Friday, May 19.

Nio Capital and the Anhui State-Owned Assets Supervision and Administration Commission did not immediately respond to requests for comment from the media.

Fusion is considered one day to help the world reduce emissions associated with climate change. Unlike current fission reactors, fusion can produce energy without producing durable radioactive waste.

Technological advances in recent years have brought it closer to achieving in real terms, sparking a surge in investment among companies and governments around the world, including the United States, Japan, and China, which want to dominate next-generation energy technology.

Nio also emphasized that the ambition of electric car manufacturers who are still losing money is in the energy and energy sector.

Although some have criticized battery exchange stations as an expensive investment, Nio argues that battery exchange is a faster solution to power electric cars and is also an energy storage facility to improve the stability of the power grid.

The company is also developing battery technology and plans to build an annual 40 gigawatt-hour battery factory in the city of Hefei, Anhui province, as previously reported by Reuters.


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