Contemporary Amperex Technology (SHE:300750) is holding negotiations to purchase a controlling stake in Nio's (HKG:9866, SGX:NIO) power unit, Reuters reported Monday, citing four people with knowledge of the matter.

The offer came after announcing its 2.5 billion yuan maximum investment in Nio Power in March, the report said, citing the sources.

The sources did not mention how much CATL was offering, but one of the sources said Nio Power was valued at more than 10 billion yuan during a 2024 funding round, the report said.

Nio Power runs more than 3,000 battery swapping stations in China, according to the report.

Nio's Singapore shares jumped 7% while its Hong Kong shares jumped 6%. CATL's shares rose 2% during Tuesday's morning trading.

Nio did not directly answer questions regarding the deal but said it was promoting the construction of battery swapping stations with multiple investors, including CATL, the report said.

"Nio and CATL will deepen collaboration on capital and business and further consolidate the strategic partnership to jointly build the largest battery swapping network globally," Reuters quoted Nio as saying.

Both CATL and Nio did not immediately respond to separate requests for comment from MT Newswires.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)