Sustainability has taken centre stage in almost every walk of life and it is the need of the hour. This has resulted in increased adoption of electric vehicles (EVs) whose sales totalled 17.1 million in 2024, an increase of 3.1 million over 2023. However, one persistent problem with EVs is their charging time. But what if the answer isn’t faster charging, but no charging at all? Swappable batteries offer a compelling shift in how we think about powering mobility, unlocking new possibilities for speed, scale, and sustainability.
This blog focuses on battery swapping and discusses its benefits and challenges, the benefits of adding connectivity to these batteries, and the current market dynamics. If you wish to read about battery swapping in more detail, please click the link: Automotive Batteries: An EV charging alternative worth USD3 billion in 2034.
Battery swapping or swappable batteries is a technology which enables EV users to quickly exchange a discharged battery pack with a fully charged battery as an alternative to having to recharge the discharged battery. This battery swap can take place at battery swapping stations (BSS). It should be noted here that the concept of battery swapping is not a new one; companies like Tesla and Renault tried to gain a foothold in the market, although the concept failed to gain traction in the long run. In 2013, Tesla introduced a battery swap for the Model S, taking about 90 seconds and costing USD60-USD80 per swap. However, the service was dropped in 2015 due to low consumer interest. In 2013, Renault partnered with Better Place to offer battery swapping for models like the Fluence ZE. The effort ended when Better Place went bankrupt, largely due to station costs ballooning to USD2 million, which was four times the initial estimate.
The benefits of battery swapping are many and varied:
While some EV chargers can take hours and fast charging still takes around 30 minutes to charge up to 80% capacity, battery switching allows EVs to swiftly exchange a discharged battery pack and the whole process takes just a couple of minutes.
In addition to time, battery swapping can save money for the users as well. In fact, while charging an electric car at a public EV charging station costs between USD10-USD30 per charge, comparable costs for vehicles that support battery swapping (like Nio’s four-wheelers) range between USD11-USD14.
Although the number of EVs is increasing, the number of charging points is not increasing at the same pace. According to Transforma Insights’ forecasts, there were 4.1 million public connected EV chargers in 2023, compared to 40 million EVs. The resulting pressure on the charging infrastructure can be at least partially alleviated with battery swapping which doesn’t require individual vehicles to be charged.
While range anxiety is a constant issue among users who depend on public charging points to charge their electric vehicles (primarily because of uneven distribution of EV charging stations and the fact that chargers are often utilised for extended periods of time), users of battery swapping are less impacted by these issues.
Despite the benefits, there are challenges which are impacting the market for swappable batteries.
The market for swappable batteries is highly fragmented, with numerous small and medium-sized Chinese vendors alongside a few Southeast Asian companies. The lack of standardisation has led to limited compatibility across manufacturers, ownership concerns regarding battery reliability, range and infrastructure availability, and inconsistent adoption by major automakers.
Automakers are reluctant to align on shared battery designs, fearing it could commoditise their technology and erode competitive advantage. Coupled with the high cost of redesigning vehicles for swappable systems and long development cycles, this has significantly slowed progress.
Battery swapping separates battery ownership from vehicle ownership, reducing upfront EV costs and resulting in more centralised maintenance. However, this raises questions about accountability. Concerns over battery lifespan, performance, and range variability persist, making regular health checks of batteries essential to building trust.
Frequent swaps can cause mechanical wear on connectors, raising concerns about long-term reliability and safety. Moreover, consumer hesitancy persists due to doubts about battery lifespan, performance, and range consistency.
Chinese and Taiwanese automotive OEMs have launched innovative battery-swapping programmes, which currently lead the market. Gogoro launched its program in 2015, followed by Nio in 2018. While adoption has grown, it's still largely limited to countries like China, Taiwan, Indonesia, Singapore, and India. Now, Chinese companies like Nio, Gogoro, and Aulton are also expanding globally. In 2022, Nio opened its first swap station in Oslo, Norway, and now operates 59 stations across Europe, including 18 each in Germany and Norway. Other Chinese brands like Hongqi, Voyah, and Xpeng are also bringing swappable battery tech to Europe.
Disruptive technologies (like IoT) are now used to better track and monitor these swappable batteries. Connectivity plays a pivotal role in bridging the gap between battery providers and end-users. It enables real-time tracking of battery location, charge condition, and health status, including signs of damage or the need for repair or replacement. Each battery is equipped with built-in sensors that collect comprehensive operational data. This data helps detect irregular behaviours and supports predictive analysis for battery longevity and maintenance needs. Providers can leverage these insights to proactively notify users when a battery requires swapping. Additionally, connectivity facilitates over-the-air software updates, enhancing battery performance, capacity, and lifespan.
Swappable batteries offer a promising solution to reduce EV refuelling time, enhance convenience, and optimise energy use. While early attempts faced challenges like high infrastructure costs and limited consumer adoption, recent advances and growing global interest especially from Asian manufacturers are reviving the market. In the long run, battery swapping is more likely to succeed in the two and three-wheeler segment, where smaller and lighter batteries are more practical. In the future, strategic partnerships between battery manufacturers and automobile companies could catalyse the market.
