By Michael Elkins

CnEVPost recently reported that Nio (NYSE 🙂 plans to invest $32.8 Million to construct lithium-ion battery laboratories and a production line for pilot cells in Shanghai.

Citing an environmental assessment report, CnEVPost says that the electric vehicle company will build 31 R&D labs engaged in lithium-ion cell and battery pack research and development as part of a new R&D project in Anting town, Jiading district. Nio also plans to create a pilot lithium-ion cell production line as well as a battery pack manufacturing line.

The report suggests that the “R&D labs will explore the charge and discharge performance, temperature performance, and safety performance of lithium-ion cells and packs under different physical experimental conditions such as temperature, tension, humidity.” The production line produces lithium-ion batteries and battery packs.

The company’s revenues continue to increase, but expenses keep increasing. Sandeep Rao, Seeking Alpha’s analyst for the stock, suggested that profitability will be affected by the expansion plans of the company.