NIO Technology, a unit of the publicly listed Chinese electric vehicle (EV) maker NIO Inc, has entered a technology license agreement with Forseven Limited, a subsidiary of the Abu Dhabi government backed CYVN Holdings, granting a worldwide license to the unit to use its proprietary tech. 

The license will allow Forseven, a UK-based electric vehicle startup, to use a certain of NIO Technology’s existing and future technical information and solutions, software and intellectual property rights related to its smart electric vehicle platforms for research and development, manufacturing, sales, import and export of vehicle models sold or marketed under Forseven brands.

Under the agreement, NIO Technology will receive technology license fees comprising a non-refundable, fixed upfront amount plus royalties determined based on the future sales of licensed products by Forseven.

NIO Inc’s partnership with a UAE-based firm comes days after XPENG, the Chinese EV company with a dual listing on NYSE and the Hong Kong Exchange, announced plans to expand to the Middle East, with a partnership deal with Ali&Sons for the UAE market. 

The Volkswagen-backed company said the partnership will enable XPENG to retail its smart EVs to local consumers by Q3 2024, with a roll out of the G6 SUV and G9 SUV models in the UAE.

(Writing by Bindu Rai, editing by Daniel Luiz)

bindu.rai@lseg.com