XIAMEN, China — The leading global manufacturer of electric vehicle batteries, CATL, has announced a significant foray into battery swapping technology in China, set to commence next year.
Battery swapping offers a rapid refueling option akin to traditional gas refills. Instead of waiting for a battery to recharge, drivers will be able to exchange their depleted batteries for freshly charged ones at designated stations. This automated process will allow electric vehicle (EV) operators to pull into a swapping facility and have their low-powered battery swapped out in a matter of seconds for a fully charged substitute from the station’s reserve.
The company has ambitious plans to establish approximately 1,000 swapping stations throughout China, which will include locations in Hong Kong and Macao. CATL has a long-range objective of constructing 10,000 stations in partnership with other companies. If realized, these plans would position CATL to compete directly with Nio, a Chinese electric vehicle manufacturer that has already implemented more than 2,700 stations with an aim to expand to at least 5,000 stations.
No comparable battery-swapping infrastructure is in place elsewhere globally, although Nio has managed to set up around 60 stations across northern Europe. This scale of investment is feasible in China due to robust governmental backing that has transformed the nation into the largest electric vehicle market and a frontrunner in EV technologies.
Robin Zeng, the CEO of CATL, expressed optimism during an engaging presentation in Fujian province, asserting that by 2030, battery swapping, home charging, and public charging stations would coexist in the market. He called upon corporate partners to collaborate in order to build more convenient, economical, and safer services for customers, which could lead to a novel lifestyle.
However, challenges lie ahead for the battery swapping model. A unified standard for battery pack design is necessary to ensure compatibility with various EV models, as most current electric vehicles are designed with their own configurations. Furthermore, an electric vehicle must be outfitted with the requisite technology to utilize swapping stations; as it stands, relatively few EV models globally support this feature.
On the other hand, EVs can access any charging station in China since all utilize a standardized plug, and advancements in fast-charging technology are reducing the time required to charge vehicles. Jing Yang, a director at Fitch Ratings focusing on China’s automobile and renewable energy industries, noted that automakers may be wary of standardizing battery packs for fear of relinquishing too much control over their supply chains.
Electric vehicle manufacturers face constant changes in specifications and must invest heavily to keep pace with the evolving EV landscape, making the adoption of new technologies a complex endeavor. Securing buy-in from automakers for less conventional infrastructure presents a hurdle, especially if electric vehicle penetration remains limited in certain regions.
Nonetheless, some firms may explore battery swapping as a potential sales booster, with associated collaborations with CATL or Nio potentially lowering overall costs, given that the battery is typically the most expensive component of an electric vehicle. Analyst Lei Xing opines that battery swapping can serve as a complement to China’s existing charging network. He predicts it may not become mainstream, yet it will constitute an integral part of the overall infrastructure.
Michael Davidson, an expert in renewable energy at the University of California, San Diego, suggests that while charging will dominate the landscape, battery swapping options may still play a role.
The concept has been more easily implemented in fleet settings, such as taxis, buses, and commercial vehicles, which often adhere to specific models and routes. CATL plans to initiate its battery swapping service through fleet operations, gradually expanding availability to individual car owners specified by Zhang Kai, deputy president of the company’s battery-swapping division.
According to Yang Jun, CEO of CATL’s battery-swapping subsidiary, the EVOGO stations can exchange battery packs in 100 seconds, emphasizing that efficiency is crucial for drivers of taxis and commercial vehicles. Wang Wubing, a Didi ride-hailing driver, indicated that he opts for battery swapping to maximize his customer pickups, albeit at a higher cost than traditional charging methods.
In the U.S., battery swapping drew attention nearly twenty years ago through the startup Better Place, which ultimately failed. Today, companies like Ample are reintroducing the concept, targeting the ride-hailing sector. Drivers for Uber and Lyft with electric vehicles seek to optimize their on-road time rather than waiting for charges, with Ample reporting swap times of just five minutes.
Both CATL and Nio have entered agreements with auto manufacturers to utilize their battery swapping stations. The crux of the matter remains whether enough automotive producers and consumers will become invested enough to make this model financially viable.