The technology isn't new but it presents several challenges.
China will see a massive expansion of electric vehicle battery swapping as global battery maker CATL says it will invest heavily in stations there next year.
Battery swapping is not new but the technology presents several challenges.
Electric vehicle adoption varies across the globe and that doesn't always bode well for building new infrastructure.
While the technology could do well in China, it's uncertain whether it could work in other countries.
What is battery swapping?
Battery swapping allows EV drivers to pull into a station with a low battery and receive a swapped, fully charged battery within minutes.
An EV has to be equipped with the right technology to swap and not many models around the world currently have it.
Automakers have to buy into the idea, and EV adoption among consumers also has to grow so that investing in new infrastructure seems worthwhile. Consumers also have to be comfortable with not owning their battery.
Why could it work in China?
China is much further along in adopting EVs than other countries.
Not only is it the world's largest auto market, but in July, the country hit a milestone with 50 per cent of new sales electric and it accounts for most of this year's global EV sales.
China supports EV growth through government subsidies and mandates.
Therefore, it makes more sense for companies to invest in unique EV infrastructure because that's more likely to be needed.
How long does a battery swap take?
Startup Ample, for example, has a modular battery swapping station that it says can complete a swap in 5 minutes.
That’s important as charging time remains a point of concern for prospective EV buyers. Even the fastest fast chargers could take at least 15 minutes for a decent charge.
Could battery swapping work elsewhere?
In the US, pure EVs only accounted for 8 per cent of new vehicle sales as of November.
Nio, a rival Chinese EV brand, has about 60 swap stations in northern Europe where the EV adoption is higher than in the US, but the same challenges remain.
Different automakers put different batteries in their various EV models, so a station would need all of those available if the industry didn't agree to a standardised battery, and not all of those models are out yet in volume. This is something that really needs scale.
Swapping could help with EV cost, currently, a barrier to adoption for many because a driver wouldn’t necessarily own the most expensive part of an EV: the battery.
Greg Less, director of the University of Michigan Battery Lab, said with proper framing and education, people might like the idea of battery swapping but it would require a rethinking of car ownership.
"Where I could see it working is if we went entirely away from vehicle ownership and we went to a use-on-demand model," Less added. “I don’t think we’re there yet".
What vehicle uses might be best for swapping?
Battery swapping might make the most sense for ride-sharing or other fleet vehicles.
Drivers of buses, taxis, Uber, or Lyft vehicles want to spend as much time on the road as possible, transporting customers and making money.
If battery swapping can shorten the time needed to charge EVs, that makes driving one less disruptive to their business.