Detroit / Beijing, March 25 -A year ago, Tesla dismissed an alternative route to battery replacement for electric vehicles as “problematic and unsuitable for widespread use.” Beijing seems to be against it.
In fact, China is clamoring for replaceable batteries for electric vehicles (EVs) as a supplement to regular vehicle charging, and the government is focusing on some companies that are advancing this technology.
Automakers Nio and Geely, battery replacement developer Aulton, and state-owned oil producer Sinopec (600028.SS) will establish a total of 24,000 replacement stations nationwide from the current 1,400 by 2025. It says it’s a plan.
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Battery replacement allows the driver to quickly replace a depleted pack with a fully charged pack instead of connecting the vehicle to a charging point. Replacements can help reduce the increased burden on the power grid when millions of drivers exploit it, but experts say it’s a great way only if batteries are standardized across the industry. I warn you that you can take off at.
However, if China succeeds in a successful major replacement, the shift will be a business model for global brands such as Tesla, Volkswagen and General Motors, where EVs are designed and powered for their own batteries. May hurt. , Unique charging network.
Even the slightest change in the fate of a country can have serious consequences for these automakers. The future of these car makers depends on success in the world’s largest car market.
Although announced little by little in recent weeks and months, China’s replacement plan, which is lesser known outside the domestic automotive sector, is 25% of car sales by 2025, or 6 million based on current passenger cars. Predictions are part of Beijing’s broader plans to fully electrify more than one passenger car. Estimates vary greatly when it comes to the number of batteries with replaceable batteries.
The Ministry of Industry and Information (MIIT), a key supporter of battery replacement, did not immediately respond to requests for further comment on China’s battery replacement strategy.
In addition, major Chinese players are also looking overseas.
CATL (Contemporary Amperex Technology Company Ltd) (300750.SZ), based in Ningde, the world’s largest battery maker, is developing a swapping service “to meet the demands of the global market” as well as in China. I told Reuters.
“We have accumulated experience in the Chinese market and at the same time we are in close contact with our overseas partners. We will receive specific information soon,” said about half of the Chinese market and used. CATL, which supplies more than 30% of battery cells, says. With EVs around the world.
Nio, one of China’s top EV makers, plans to provide battery replacement services to US customers by 2025, said Ganesh Iyer, head of the company’s North America. With over 800 swap stations in China, we have just installed the first station in Europe.
“Never happen”
Such plans conflict with the views expressed by global EV pioneer and leader Tesla when it rejected the feasibility of major battery replacement in China in March 2021. It tried swapping in the United States many years ago and abandoned it.
Industry executives are divided on whether China’s promotion can overcome resistance to Western automakers abandoning their battery designs and adopting standardized ones.
Andy Palmer, former CEO of Aston Martin and now head of switch mobility for EV manufacturers, said:
John Holland, European and Middle Eastern commercial director of wireless EV charging company Momentum Dynamics, said battery convergence has been a headache for automakers.
“So how do you differentiate your product?”
Tesla (TSLA.O), GM (GM.N) and Volkswagen (VOWG_p.DE) have stated that they are not currently considering battery replacement.
A GM spokeswoman told Reuters that replaceable batteries are “not part of our strategy at this time.”
Initially, the company was considering replacing the battery to avoid waiting at the charging station, according to a VW spokeswoman, but due to advances in fast charging and the low cost of non-replaceable batteries, the focus is on it. Moved to the latter.
“Nevertheless, our strategists closely monitor and evaluate the competitive environment and all developments in this area,” said the German automaker.
A Tesla spokesperson did not immediately respond to a request for comment.
There are critics and cheerleaders in the field of rapidly evolving automotive technology, both in swapping and regular grid charging.
The ease of battery replacement for electronic scooters has been demonstrated in Asia and Europe, but the challenge is to adapt the technology to larger and more complex cars, trucks and vans.See the accompanying short story: Read more
Concerns about the length of the replacement time have diminished, and Nio says it has automated the process and completed in just 90 seconds.
However, the more familiar aspect of grid charging is off to a very positive start, supported by the fact that billions of dollars worth of charging infrastructure have already been built around the world.
Replacements can become obsolete as automakers are also rolling out EVs with improved batteries that boast a longer range and shorter charging times.
“The biggest game in town”
In China, MIIT last year announced the world’s first swapping technology standard for the automotive industry. They came into force in November and specified safety requirements, test methods, and inspection rules for EVs with replaceable batteries.
By 2023, the ministry aims to have a total of more than 100,000 battery-replaceable vehicles and more than 1,000 exchange stations in 11 cities. Large city stations accommodate both passenger and commercial vehicles, while suburban provincial cities focus on electric heavy-duty trucks.
But the main uncertainty of China’s ambition is whether enough automakers are adopting standardized batteries. This is an obstacle that has thwarted battery replacement attempts over the last decade, but if overcome, it could push the technology to a viable scale.Read a short history of replaceable batteries: Read more
There is still a long way to go. Even the replacement options that Nio offers to its customers use its own battery, limiting service to people driving Nio cars with its own battery.
CATL, which helped Nio develop replaceable batteries, will register FAW Motor in China as the first customer of the new Evogo battery replacement service and will extend the service to other Chinese automakers.
CATL wants domestic companies to embrace standard battery designs and allow stations to serve models from multiple brands. ..
TuLe, Managing Director of Sino AutoInsights, states that the company is “the biggest game in town” for EV batteries.
“We can provide a large footprint for replacing stations and a low cost for using those stations,” he said.
Meanwhile, among Chinese companies building swap station networks, Shanghai-based Aulton New Energy Automotive Technology has worked with car makers to develop standardized batteries and worked with Sinopec until 2030. Announced that it will install stations at 30,000 Sinopec gas stations in China.
Aulton did not respond to the request for comment.
American magic?
According to many industry experts, international carmakers may resist replaceable batteries, but rely on Chinese sales to fund a costly transition to electricity, There are few options other than adapting to the market there.
In addition, if Beijing finally mandates a replaceable battery and begins to say, “OK, the only car you are allowed to produce is one that meets the standards,” to continue doing business in China. You’ll have to obey, “says John, assistant professor of engineering at George Washington University.
Some swapping advocates are looking ahead of China.
Levi Tillemann, Head of Policy and International Business at Ample, a San Francisco-based battery replacement startup, said, “Battery replacement is too convenient, too economical, too logical, and it’s on a large scale in Europe and the United States. Don’t do it. “
“It’s a kind of magical thinking to imagine this as a phenomenon peculiar to China,” he added.
Ample, one of only a handful of battery replacement developers outside of China, has raised $ 275 million from investors such as energy companies Shell, Repsol and Eneos, raising its valuation to $ 1 billion. rice field.
He says he runs a pilot program with Uber (UBER.N) and car rental startup Sally and is working with several unnamed car makers.
“Because of the relatively small number of vehicles we use most often, we can deploy and operate a battery replacement system,” says Tillemann. “Therefore, the fleet is our main target.”
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Reported by Paul Lienert of Detroit, Nick Carey of London, and Shirouzu Norihiko of Beijing. Additional report by Victoria Valdersee in Berlin. Edited by Pravin Char
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