what’s new

China’s leading electric vehicle (EV) battery manufacturer, CATL, has announced plans to significantly expand its battery exchange infrastructure in 2025.

The company aims to build 1,000 battery exchange stations across China, including Hong Kong and Macau, with a long-term goal of building 10,000 stations in cooperation with its partners.

Why it matters

Battery swapping offers a quick alternative to traditional EV charging.

It allows drivers to replace dead batteries almost instantly, addresses concerns about charging times and promotes convenience and adoption of cleaner vehicles.

What to know

CATL CEO Robin Zeng said that by 2030, battery swapping, home charging and public charging stations will each have a significant share of the EV refueling market.

The company has developed 10 new EV models with car manufacturers, including Changan Auto and FAW, with a “choco-swap” battery that can be replaced in one minute.

Wang Wubing, a Didi driver in Xiamen, said he uses CATL’s battery exchange stations to save time and serve more customers, although he noted that exchange is more expensive than traditional charging.

Subscription fees for the choco-swap service will start at 369 yuan ($51) per month.

CATL’s initiative positions them as a competitor to companies like Nio, which has already established more than 2,700 swap stations and plans to expand further.

Despite the potential benefits, battery swapping faces challenges, particularly the need to standardize across EV models. Most electric vehicles have a unique battery configuration, which complicates the implementation of a universal replacement system.

In addition, advances in fast charging technology are reducing charging times, which may affect the adoption rate of battery replacement as a tangible solution.

What people are saying

CATL CEO Robin Zeng during the presentation: Appealed to corporate partners to work together to “create more convenient, more economical and safer services for customers and promote a whole new way of life”.

Lei Xing, an analyst of the Chinese automobile market: “I don’t see it becoming mainstream, but I do see it becoming a key part of that infrastructure.”

Michael Davidson, a renewable energy expert at the University of California: He believes charging will dominate “and maybe there will be some battery swapping options mixed in.”

Jing Yang, an expert on China’s automotive industry and the renewable energy sector: The automakers in question may worry that adopting a standard battery could cede too much control of their supply chain to others. However, some may want to test the waters to see if a battery swap can improve sales, and if it was with CATL or Nio, it could reduce costs.

What happens next

CATL plans to start rolling out battery swaps with fleets such as taxis, buses and trucks, which often have standardized models and operate on set routes.

The company intends to expand services for individual car owners at a later stage.

This article includes reporting from The Associated Press