Chinese Battery Swap Growth Opportunities

The Transformational Growth of Traditional Electric Vehicle Charging Solutions and the Innovative Battery-as-a-Service Business Model Lead to Intense Competition in the Market

Battery swap services are emerging solutions in China and the world. They provide quick battery replacement in 3-10 minutes. In addition, in comparison to traditional charging solutions, they offer significant time savings. Charging solutions in the Chinese electric vehicle (EV) market are being revolutionized. The government encourages the use of battery swap services as they provide rapid battery replacement and increased time savings; therefore, fleets such as public taxis are gradually adopting these solutions.

Furthermore, the launch of the Battery-as-a-Service (BaaS) monthly subscription and the reduction in the cost of EVs (battery separation) have increased the sales attractiveness of battery swap EVs among individual EV buyers. However, the Chinese battery swap market presents an oligopoly scenario. In 2020, only 3 operators participated in the market; nevertheless, this was an increase from 2 in 2019.

In 2020, China developed and operated 555 battery swap stations, and the annual frequency of battery swaps reached 27.3 million. Moreover, 3% of operating EVs in the country adopted battery swap solutions in 2020. Passenger vehicles accounted for the largest share (60%) of battery swap EVs. However, the monthly frequency of passenger vehicles' battery swaps was about 4-6 times. In comparison, public taxis and commercial vehicles contributed to a higher frequency of battery swaps.

In future, a growing number of government regulations will be introduced in the Chinese battery swap market. In addition, an increasing number of EV models for battery swaps will be launched, and a growing number of potential stakeholders will enter the market, leading to increased market fragmentation. Nevertheless, traditional charging and battery swap solutions will coexist on compatible EVs, and the market will continue to grow in 2025.

This study assesses the battery swap market in China, including the passenger vehicle and the commercial vehicle segments. It provides a market overview of 2020 in terms of overall public charging and battery swap service solutions. The research service includes snapshots of EV sales and ownership and summarizes information such as total battery swap stations, total battery swap EVs, and total battery swap services. It also comprises current and future market trends, key government regulations, comparative cost analysis between traditional charging solutions and battery swap services, and important battery swap service operator profiles