China’s battery manufacturing giant, CATL (300750.SZ), announced on Wednesday the co-development of 10 electric vehicle (EV) models featuring its innovative swappable battery technology, marking a push to reshape the EV charging landscape. CEO Yang Jun of CATL’s battery-swapping brand EVOGO revealed that the first vehicle utilizing the “choco-swap” battery system will debut this month, with additional models to follow in the coming months.
To bolster adoption, CATL plans to establish 1,000 battery-swapping stations in 2024, with an accelerated rollout anticipated through partnerships. “China could eventually have 30,000-40,000 battery swapping stations, potentially replacing a third of the country’s approximately 100,000 gasoline stations,” Yang forecasted. The EVOGO system, launched in 2022, enables drivers to replace EV batteries within one minute. Partner automakers include Changan Auto and FAW, with initial charging stations already operational across select Chinese cities.
CATL Chairman Robin Zeng emphasized the company’s broader strategy to integrate renewable energy into battery-swapping stations, aiming to stabilize power grids while promoting green energy. “The choco-swap system will have two standard battery sizes to drive adoption,” Zeng noted during an event in Xiamen. Subscription fees for the service start at 369 yuan ($51) per month.
CATL is also eyeing innovations in micro power grids and skateboard chassis to diversify its business portfolio, Zeng disclosed. Meanwhile, competitors such as Nio (9866.HK) have made significant strides, with over 2,800 battery-swapping stations established in China, enabling battery replacements within three minutes.
As EV growth faces global infrastructure bottlenecks, battery-swapping is emerging as a key solution. By 2030, Zeng anticipates that swapping could account for a third of EV power-up methods alongside home and public chargers.
