(Bloomberg) -- China’s Contemporary Amperex Technology Co. Ltd. pledged to invest more on battery swapping solutions that include battery packs, subscription plans, and partnerships.
The world’s largest maker of electric-vehicle batteries on Wednesday unveiled two standardized products of its swappable battery pack, dubbed Choco, which will enable an EV to replace its depleted battery with a charged one in as quickly as 100 seconds.
The company also announced a subscription package that allows customers to drive up to 3,000 kilometers (1,864.1 miles) for a starting price of 369 yuan ($51) a month, or drive an unlimited range from as low as 469 yuan. Customers can also opt for a separate battery insurance at 500 yuan with the battery maker’s insurer partners.
“Battery swapping, home charging, and public charging are set to be the three pillars by 2030,” CATL’s Chairman Robin Zeng said at the event in Xiamen, Fujian province. “It’s a promising future.”
Battery swapping is seen as key to free EV drivers from the range anxiety. However, the huge investment needed for construction and operation of such stations, as well as the long capital return period, tend to pose challenges for companies.
CATL, which supplies many big name carmakers including Tesla Inc., will keep working on the standardization of battery sizes, said Zeng.
Contemporary Amperex Energy Service Technology Ltd., a unit of CATL, plans to build the first 1,000 battery swap stations, according to its Chief Executive Officer Yang Jun, as part of a vision to eventually reach 30,000 to 40,000 stations and serve 20 million cars.
CATL set up a battery-asset-management company with Nio Inc. in 2020, which allows Nio customers to buy a car with leased, swappable and upgradeable batteries. The Ningde, Fujian-based battery manufacturer officially launched its own battery swapping solutions, including the Choco batteries, in 2022, with the initial services covering 10 cities.
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