NIO said on Watch Psych 2: Lassie Come Home OnlineMonday that it had signed a share subscription agreement with CYVN Holdings for a $2.2 billion capital injection, as the Abu Dhabi-controlled fund raised its bet on the Chinese electric vehicle maker following a $1.1 billion investment in July. CYVN Holdings will take a total of a 20.1% stake in NIO after the deal is completed, making it the largest shareholder of the company entitled to hold two seats on NIO’s board of directors. Founder and chief executive William Li still holds a controlling stake and voting rights at the EV maker. The Middle East is becoming a major supporter of Chinese EV makers as the Gulf region, known for its oil and gas riches, looks to diversify the economy in preparation for a global transition to green energy. Saudi Arabia’s Ministry of Investment is set to invest $5.6 billion in Shanghai-headquartered Human Horizons based on an agreement signed in June, while Beyonca, backed by Renault and Dongfeng Motor, in October signed a memorandum of understanding with Riyadh-based Al Faisaliah Group Holding Company. Li told Chinese reporters on Dec. 14 that NIO plans to enter the United Arab Emirates in 2024. [NIO statement]
