Why Nio Is Betting On This Honeywell Product To Fight Global Warming

Nio Inc NIO will use Honeywell International Inc’s HON refrigerant with ultra-low global warming potential for its recently launched ET7 sedan, CnEVpost reported on Thursday, citing the U.S. industrial company.

What Happened: Honeywell claims its hydrofluoroolefin (HFO)-based refrigerant has a global warming potential (GWP) of less than 1, a 99.9% reduction compared to HFC refrigerants currently used in the Chinese market.

The HFO-1234yf refrigerant was being used in more than 120 million vehicles globally at the end of last year, the report said, citing Honeywell.

It replaces a third-generation refrigerant commonly used in cars sold in China. 

See Also: Tesla Rival Nio Now Bumping Up Prices Of Its ET7 Sedans

Why It Matters: The move comes amid China ramping up its new energy vehicle efforts that will help it switch to zero-emission vehicles.

Shanghai-based Nio, which competes with Tesla Inc TSLA, hiked the starting prices of all ET7 models by $1,470 earlier this week.

ET7 models would be priced at $68,700 to $80,400 after the price change for the pioneer version.

Price Action: Nio shares closed marginally higher at $14.6 on Wednesday.