"Battery Swap Stations: A Game-Changer in the Future of Electric Vehicle Charging"

Battery swap stations, a key innovation in the NEV charging ecosystem, are advancing toward large-scale application driven by policy and tech progress. Major players like CATL and NIO lead industrial chain collaboration, with advantages in fast swap efficiency and diversified scenarios. However, profitability dilemmas and standardization fragmentation persist. Future growth relies on tech innovation, scale expansion, and global layout, promising a bigger role in the NEV industry.

With the continuous rise in the penetration rate of the new energy vehicle (NEV) industry, the competitive focus of the power battery market is shifting from mere capacity expansion to full-lifecycle management and service innovation. Against this backdrop, battery swap stations, as a key innovation in the NEV charging ecosystem, are transitioning from the early technical verification phase to large-scale application, with their development trajectory attracting widespread attention.​

 

I. Development History: Advancing Through Twists and Turns, Accelerated by Policy Support​

The development of battery swap stations in China has gone through three evolutionary stages. From 2006 to 2011, State Grid took the lead in technical exploration, initiating attempts at the battery swap model. However, between 2012 and 2018, the industry faced obstacles due to issues such as the lack of standards and cost pressures, making charging the preferred development direction. It was not until after 2019, driven by both policy shifts and technological progress, that the battery swap model achieved breakthroughs in the commercial vehicle sector. By the end of 2022, the number of operational battery swap stations in China reached 1,973, a 6.6-fold increase compared to 2018. Since then, the industry has entered a fast track of development. Data from the Ministry of Industry and Information Technology (MIIT) shows that as of the end of 2024, China had built 4,443 battery swap stations.​
 

II. Current Situation Analysis: Maturing Industrial Ecosystem with Major Players Entering the Fray​

(1) Convergence of Multiple Forces and Collaborative Industrial Chain Development​
 

Currently, the battery swap industrial ecosystem is transitioning from individual enterprise layout to full-industry-chain collaboration. Battery manufacturers, vehicle OEMs, energy giants, and operators are accelerating integration. Take CATL (Contemporary Amperex Technology Co., Limited) as an example: relying on its "Chocolate Swap Battery" technology, it has formulated a blueprint for the "10,000-Station Swap Network Project." The "Chocolate Swap Battery Packs" adopt a standardized battery module design, enabling compatibility with different vehicle models ranging from A00-class to C-class passenger cars and logistics vehicles. CATL has not only set short-term, medium-term, and long-term targets for battery swap station construction but also actively collaborated with upstream and downstream enterprises in the industrial chain. For instance, it signed a strategic agreement with Sinopec to co-construct a large number of battery swap stations, leveraging Sinopec's extensive gas station network. In the commercial vehicle sector, CATL has jointly launched over 30 standardized battery swap models with more than a dozen vehicle OEMs including FAW Jiefang and Shaanxi Heavy Duty Automobile, and formed partnerships with leading logistics companies such as JD Logistics and Transfar Logistics to promote the battery swap model.​
In the passenger car segment, NIO stands out, leading the market with over 3,200 battery swap stations. It has also established a strategic cooperation with CATL for in-depth collaboration in areas such as unified battery standards and shared swap networks. Focusing on building a C-end user ecosystem, NIO has covered 90% of prefecture-level cities with over 3,000 battery swap stations, creating "Power Zones" (80% coverage within 3 kilometers) and "Power Journeys" inter-provincial route planning, forming a closed-loop service system of "chargeable, swappable, and upgradeable."​
 

(2) Rapid Market Growth and Diversified Application Scenarios​

According to industry estimates, as of August 2025, the number of battery swap stations in China has exceeded 4,500, and is expected to reach nearly 8,000 by the end of 2025, with the overall market size approaching 100 billion yuan. While reducing users' purchase costs, the battery swap model optimizes resource utilization efficiency through centralized battery management. It has demonstrated unique advantages in various application scenarios. In the commercial vehicle sector, especially for heavy-duty trucks, the per-kilometer energy cost of fuel-powered heavy trucks is approximately three times that of electric heavy trucks, and the 3-5 minute battery swap efficiency is comparable to refueling. Battery swap stations can complete the swap process in 3-5 minutes, significantly outperforming traditional charging efficiency, and have become core infrastructure for increasing the daily mileage of operational vehicles. For example, a single heavy-duty truck battery swap station can serve dozens of trucks, drastically reducing initial enterprise investment and extending the full-lifecycle value through cascade utilization of batteries. In 2025, commercial vehicles accounted for over 40% of the battery swap market, becoming one of the core drivers of station construction.​

III. Challenges Ahead: Unresolved Profitability Issues and Standardization Barriers​

(1) Profitability Dilemma of "Heavy Assets and High Investment"​

The "heavy asset, high investment" nature of the battery swap model remains a core challenge to its development. The construction and operation costs of a single battery swap station are relatively high, with a long payback period. For instance, the cost of NIO's third-generation battery swap station is approximately 1.5 million yuan per station; if 1,000 new stations are added annually, the hardware investment alone would reach 1.5 billion yuan. To achieve its 10,000-station target, CATL would need an estimated investment of 15 billion yuan based on 1.5 million yuan per station, plus additional operational costs, creating significant pressure. New energy heavy-duty truck battery swap stations typically take 3 to 5 years to become profitable, relying primarily on independent investment from swap operators in the early stages. From project approval and construction to operation, the early phase requires data analysis of logistics fleets and transportation capacity on planned routes, as well as integration of land and power resources. After construction, operators conduct long-term operational management—an entire process characterized by heavy assets, high investment, and high entry barriers. For operators, profitability factors include service frequency and fees; further unmanned and automated operations in the future can reduce labor costs. In addition, achieving partial profitability through "battery banks" is a path adopted by most battery swap operators. For example, CATL offers user subscription and rental services, spreading costs through large-scale operations.​

(2) Delayed Standardization Hindering Development​

In the view of many industry practitioners, an important factor restricting the further development of the battery swap model and industry is the issue of standardization. Currently, the new energy battery swap standard system suffers from fragmentation, with inconsistent local standards, industry standards, and OEM-specific standards leading to non-unified interfaces, incompatible bases, and varied battery specifications. This chaotic standardization situation seriously hinders industry development and is a core reason for the slow promotion of battery swap products. For example, swap equipment and batteries produced by different enterprises are difficult to generalize, increasing construction and operational costs and limiting user choices.​

IV. Future Outlook: Sustained Development Driven by Technological Innovation and Market Expansion​

(1) Technological Innovation to Improve Efficiency and Reduce Costs​

In the future, the battery swap station industry will enhance efficiency and reduce costs through technological innovation. On the hardware front, suppliers with "full-stack capabilities" will gain an advantage. For example, Zhonghuan Swap, a subsidiary of Kangdi Technology, has formed differentiated advantages in areas such as robotic arm precision, battery compartment temperature control, and operation platform algorithms through years of technical accumulation, and achieved rapid delivery by adapting to CATL's standardized interfaces. Such collaborations can reduce single-station construction costs by 15%-20% while improving equipment reliability and maintenance efficiency. On the software front, intelligent management systems will further optimize battery scheduling and swap processes, enhancing operational efficiency. As industry standards gradually unify, the economies of scale of leading suppliers will become more prominent, driving battery swap station construction costs toward an economic inflection point.​

(2) Market Expansion and Global Layout​

On one hand, the domestic market will be further expanded. CATL's Chocolate Swap plans to build over 3,000 battery swap stations in more than 140 cities by 2026, simultaneously launching highway network construction with a long-term target of 30,000 stations and an open franchise program. Qiji Swap plans to build 900 stations by 2026, expanding trunk lines to the "Five Horizontal and Five Vertical" network, with a plan to complete the "Eight Horizontal and Ten Vertical" green network covering 80% of the country's trunk line transportation capacity by 2030. On the other hand, global layout will commence. CATL is collaborating with strategic partners to promote the battery swap model to overseas markets. Leveraging Kangdi Technology's channel network and localized manufacturing experience in the North American off-highway vehicle market, the two parties plan to prioritize coverage of countries along the "Belt and Road" and European and American markets. This process not only requires adapting to the regulations and energy structures of different regions but also improving the flexibility of station deployment through modular design—for example, developing photovoltaic-direct-connected battery swap stations for areas with weak power infrastructure to achieve energy self-sufficiency.​
As an important part of the new energy vehicle charging ecosystem, battery swap stations face numerous challenges in their development, but their advantages and potential cannot be ignored. With continuous technological progress, collaborative industrial chain development, and gradual market expansion, battery swap stations are expected to play a more important role in the future new energy vehicle industry, driving the sector toward a more efficient and sustainable direction.