NIO inks agreement to help build EV auto parts industrial park in Lu’an city

Shanghai (Gasgoo)- On June 10, NIO signed a framework agreement with the municipal government of Lu'an, a prefecture-level city in western Anhui province, to jointly build an industrial park of supporting auto parts used for intelligent electric vehicles, according to a post on local government's official WeChat account.

Located in Lu'an Economic Development Zone, the new facility is positioned as a high-end aluminum die-casting low-carbon and circular industrial park. Driven by China's carbon emission peak and neutrality targets, both parties are committed to building it into a national-level demonstration industrial park for pilot circular economy projects. 

Signing agreement; photo credit: Lu'an municipal government's WeChat account

Covering an area of around 900mu (600,000 square meters), the first phase of the industrial park will introduce a host of supporting auto parts enterprises focusing on refined disassembly of complete vehicles, recycling of aluminum and other materials, smelting of aluminum materials, aluminum die-casting, and wheel hub manufacturing, aiming to build a complete low-carbon circular industrial chain for aluminum die-casting.

The first-phase facility is scheduled to start operation in the first half of 2023, eyeing an annual production capacity of 300,000-tonne aluminum die-casts and a yearly production value of 10 billion yuan ($1.491 billion).

Upon completion of the first-phase industrial park, the carbon emissions in the aluminum die-casting process of NIO's vehicles would be reduced by around 50%.

Besides, NIO will carry out cooperation with Lu'an municipal government in industrial exchanges and talent interaction.

Notably, NIO has deployed two car manufacturing plants with JAC Group in Hefei, one of the neighboring cities of Lu'an. Thus, the newly-formed cooperation will greatly facilitate the auto parts supply for NIO's vehicle production.