CATL’s Quest to Make Battery Swapping a Growth Driver (AI Translation)
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文｜财新周刊 安丽敏
By An Limin, Caixin Weekly
没有人再怀疑宁德时代（300750.SZ）布局换电的决心。
No one doubts Contemporary Amperex Technology Co. Limited's (CATL, 300750.SZ) determination to invest in battery swapping anymore.
2025年4月23日，这家动力电池龙头企业与一汽集团、长安汽车（000625.SZ）、北汽集团、奇瑞汽车等整车公司共同发布十款换电车型；当天，又与广汽集团（601238.SH）签署换电全生态战略合作协议。
On April 23, 2025, this leading power battery manufacturer, together with automakers such as FAW Group, Changan Automobile (000625.SZ), BAIC Group, and Chery Automobile, jointly unveiled ten battery-swapping vehicle models. On the same day, the company also signed a comprehensive strategic cooperation agreement on battery swapping ecosystem with GAC Group (601238.SH).
就在几个月前，行业内对宁德时代的换电计划还不乏质疑声音。2024年12月，公司董事长曾毓群宣布，要在2025年建设1000座换电站，中期、长期目标更是分别多达1万座和3万座。仅是短期目标就很难达成，毕竟从2022年初宣布进军换电后两年时间里，宁德时代建设的站点只有几十座。
Just a few months ago, there was no shortage of skepticism within the industry regarding Contemporary Amperex Technology Co. Limited’s (CATL) battery swapping plans. In December 2024, the company’s chairman, Zeng Yuqun, announced an ambitious goal: to build 1,000 battery swapping stations by 2025. The company’s medium- and long-term targets are even more aggressive, at 10,000 and 30,000 stations respectively. Even the short-term goal appears difficult to achieve—after all, in the two years since announcing its entry into the battery swapping sector at the beginning of 2022, CATL had built only a few dozen stations.
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- CATL is accelerating investment in battery swapping, launching multiple partnerships with Chinese automakers, targeting 1,000 swap stations by 2025, and planning up to 30,000 stations long term.
- CATL faces challenges from rapid advances in ultra-fast charging technology and industry reluctance, but aims to become a service provider by operating battery assets and infrastructure.
- CATL dominates global EV battery supply (37.9% share in 2024), but faces rising competition from both Chinese and international rivals.
Contemporary Amperex Technology Co. Limited (CATL), a global leader in electric vehicle (EV) battery manufacturing, has decisively shifted its strategy to actively invest in the battery swapping sector. On April 23, 2025, CATL, collaborating with major automakers such as FAW Group, Changan Automobile, BAIC Group, and Chery Automobile, introduced ten battery-swapping vehicle models and formalized a strategic partnership with GAC Group to build out a battery-swapping ecosystem [para. 1]. This marks a significant acceleration in CATL’s investment, dispelling industry skepticism that lingered due to its slow progress since entering the sector in 2022 [para. 2].
CATL’s goals are ambitious: it aims to establish 1,000 battery swapping stations by 2025, with medium- and long-term plans for 10,000 and 30,000 stations, respectively [para. 2]. Recent months have seen substantial moves, including a strategic investment of up to 2.5 billion yuan ($347 million) in Nio Energy, and collaboration with Nio’s “Firefly” brand to integrate their battery-swapping networks [para. 3][para. 4]. Nio, boasting over 3,000 swap stations across China, may become further integrated into CATL’s operations, with CATL reportedly considering a majority stake in Nio Energy [para. 4]. CATL also signed a major agreement with Sinopec to co-develop 500 swap stations by 2025 and possibly up to 10,000 long-term, leveraging Sinopec’s extensive infrastructure [para. 5].
CATL views battery swapping as a strategic avenue for business transformation and a means to cement relationships with automakers. The battery swapping model separates vehicle and battery ownership, with CATL envisioning itself as a battery operations service provider, participating in both asset management and infrastructure [para. 10][para. 11][para. 12]. The business model offers recurring revenues through battery leasing and swapping fees, as well as potential in grid storage and end-of-life battery recycling [para. 12][para. 13]. Moreover, by adopting this model, CATL aims to lower EV ownership costs and capture market share as the transition away from combustion vehicles accelerates [para. 14].
Despite its promise, the battery swapping model poses formidable challenges, as no precedent for global success exists. The capital-intensive nature of this business is underscored by Nio’s 2024 net loss of 22.4 billion yuan, compared to profitability or losses narrowing for peers like Li Auto and Xpeng [para. 15][para. 16]. Success hinges not only on technology, but on establishing industry-wide standards and viable business models—areas where CATL, given its scale and influence, has advantages over automakers [para. 17].
CATL first entered battery swapping in January 2022, innovating with its modular “Choco-SEB” battery units that allow for flexible driving ranges, and evolving to standardized packs in its latest offerings to maximize compatibility across automakers [para. 18][para. 21]. Pilot programs started in Xiamen and have expanded gradually, focusing initial efforts on operational vehicles (like ride-hailing fleets) in partnership with Didi Chuxing, before targeting the broader consumer market [para. 23][para. 24][para. 25][para. 26].
Battery swapping aligns with mainstream market demand for cost-effective, convenient energy solutions and is designed to overcome urban charging limitations—less than one-third of urban EV owners have access to home charging [para. 28][para. 29]. Battery swapping can emulate the speed of gasoline refueling, easing “range anxiety” and catalyzing wider EV adoption [para. 30].
The battery market globally is fiercely competitive. In 2024, CATL led with 37.9% of installed power battery share and notable profits (RMB 50.74 billion net on RMB 362.01 billion revenue), but faces mounting domestic and international competition from companies like BYD, LG Energy Solution, and Panasonic, as well as supply chain and policy obstacles abroad [para. 49][para. 50][para. 51][para. 52][para. 53]. CATL’s foray into energy storage, aviation, and battery operations services signals a broader strategic pivot to sustain growth amid a shifting landscape [para. 56][para. 57][para. 58]. The ultimate success of CATL’s battery swapping pivot depends on overcoming technical, commercial, and competitive obstacles while demonstrating compelling market results [para. 84].
- Contemporary Amperex Technology Co., Limited (CATL)
宁德时代 - Contemporary Amperex Technology Co., Limited (CATL), founded in 2011, is the global leader in power battery installations and energy storage battery shipments. Facing rising competition and declining margins, CATL is betting on the battery swapping (swap station) business as its second growth curve, partnering with major automakers, energy companies, and expanding internationally. CATL aims to transition from a battery manufacturer to a battery operation and service provider.
- FAW Group
一汽集团 - FAW Group is mentioned in the article as one of the key automotive companies partnering with CATL (Contemporary Amperex Technology Co. Limited) to jointly launch ten new battery swapping vehicle models. This collaboration highlights FAW Group’s involvement in CATL’s ambitious battery swapping ecosystem, aiming to accelerate the adoption of battery swapping technology alongside other major automakers like Changan, BAIC, and Chery.
- Changan Automobile
长安汽车 - According to the article, Changan Automobile (000625.SZ) is one of several automakers collaborating with CATL on the release of ten battery swapping vehicle models in 2025. This partnership demonstrates Changan's involvement in the battery swapping ecosystem and aligns it with industry leaders like CATL to promote new energy vehicle technologies and commercial models.
- BAIC Group
北汽集团 - According to the article, BAIC Group is one of the automakers collaborating with CATL on battery swapping. On April 23, 2025, CATL and BAIC Group, along with other automakers, jointly released ten battery swapping vehicle models, demonstrating BAIC’s participation in the battery swapping ecosystem led by CATL.
- Chery Automobile
奇瑞汽车 - Chery Automobile is mentioned in the article as one of several automakers—alongside FAW Group, Changan Automobile, and BAIC Group—that partnered with CATL to launch ten battery swapping vehicle models in April 2025. This collaboration highlights Chery's involvement in advancing the battery swap ecosystem and its willingness to work with leading battery manufacturers like CATL to promote new energy vehicle innovations.
- GAC Group
广汽集团 - According to the article, on April 23, 2025, CATL and GAC Group jointly released ten battery swap vehicle models. On the same day, CATL also signed a comprehensive battery swap ecosystem strategic cooperation agreement with GAC Group. This cooperation is part of CATL's broader push into battery swapping, aiming to accelerate the construction of a national battery swap network in partnership with leading automakers.
- NIO Inc.
蔚来 - NIO Inc. is a pioneer of the battery swapping model for passenger vehicles in China, operating over 3,000 swap stations. In 2025, NIO entered into a strategic partnership with CATL, including using CATL’s swap network for its new "Firefly" brand. CATL is also considering a strategic investment of up to 2.5 billion RMB in NIO Energy, and may even seek majority ownership or an acquisition in the future.
- NIO Energy Investment (Hubei) Co., Ltd.
蔚来能源投资（湖北）有限公司 - NIO Energy Investment (Hubei) Co., Ltd. is a subsidiary of NIO, focused on energy and battery swap infrastructure. Ningde Times (CATL) is planning a strategic investment of up to 2.5 billion yuan in NIO Energy. CATL may seek to hold a majority stake or even acquire the company, aiming to expand its influence in the battery swap ecosystem.
- Sinopec
中国石化 - According to the article, CATL signed a cooperation framework agreement with Sinopec on April 2. Sinopec is expected to participate in CATL’s Hong Kong listing financing, and both parties plan to jointly build a nationwide battery swapping network, aiming for 500 stations by 2025 and a long-term goal of 10,000 stations. Sinopec’s extensive gas station and energy infrastructure resources provide CATL fundamental support for large-scale expansion.
- Li Auto Inc.
理想汽车 - Li Auto Inc. (NASDAQ: LI) is mentioned in the article as one of China's new energy vehicle startups. Unlike NIO, which heavily invested in battery swapping and incurred a 22.4 billion RMB net loss in 2024, Li Auto achieved profitability for two consecutive years (2023 and 2024), highlighting its financial stability and success amidst fierce competition in the Chinese electric vehicle market.
- XPeng Inc.
小鹏汽车 - According to the article, XPeng Inc. (NYSE: XPEV) is one of the new energy vehicle startups in China. In 2024, XPeng managed to significantly narrow its net loss by 44%, bringing it down to 5.79 billion yuan, contrasting with NIO’s much larger losses. XPeng, however, is not mentioned as a major player in battery swapping or related partnerships with CATL in this article.
- Times Electric Service Technology Co., Ltd.
时代电服科技有限公司 - Times Electric Service Technology Co., Ltd. (时代电服科技有限公司), also known as Times Electric Service, is the main operator of CATL’s (Contemporary Amperex Technology Co., Ltd.) battery swapping business for passenger vehicles. Founded under CATL, it is responsible for the development and deployment of battery swapping stations and related services. Yang Jun, CATL's head of the battery swapping business, currently oversees Times Electric Service.
- Times Xiaoju (Xiamen) New Energy Technology Co., Ltd.
时代小桔（厦门）新能源技术有限公司 - Times Xiaoju (Xiamen) New Energy Technology Co., Ltd. is a joint venture established in February 2025 by CATL and Didi. Its major shareholders are Times Electric Service (a CATL subsidiary) with about 69.7% and Zhejiang Xiaoju Energy Technology Innovation Co., Ltd. with 30.3%. The company focuses on the battery swap market, initially targeting ride-hailing and operational vehicles to accelerate the construction of battery swap stations.
- Zhejiang Xiaoju Energy Technology Innovation Co., Ltd.
浙江小桔能源科技创新有限公司 - Zhejiang Xiaoju Energy Technology Innovation Co., Ltd. is a shareholder in the joint venture Times Xiaoju (Xiamen) New Energy Technology Co., Ltd., formed in February 2025 by CATL and Didi. In this partnership, Zhejiang Xiaoju Energy holds approximately 30.3% of shares, with the goal of accelerating the development of battery swap infrastructure, especially focusing on operating vehicles.
- BYD Company Limited
比亚迪 - BYD Company Limited (002594.SZ) is both a battery manufacturer and an automaker. Leveraging its cost advantage, BYD has become the top-selling car brand in China in 2024. The company is a major competitor for CATL, driving other automakers to seek cost reductions and alternative battery suppliers amid intense industry competition. BYD is also advancing charging technology, having launched a megawatt fast-charging solution for electric vehicles.
- GAC Toyota
广汽丰田 - According to the article, a representative from GAC Toyota mentioned that while they acknowledge the high quality of CATL's batteries, CATL’s prices are considered high under Toyota’s procurement standards. As a result, for their new electric vehicle models, GAC Toyota has chosen a different supplier—China Innovation Aviation (CALB)—and has sent a team to help CALB improve over 1,000 production and product criteria.
- Toyota Motor Corporation
丰田汽车 - According to the article, a representative from GAC Toyota stated that Toyota has only three battery suppliers worldwide, including CATL. Although the representative acknowledged the high quality of CATL’s batteries, their prices are relatively high under Toyota’s procurement standards. As a result, GAC Toyota chose to support another supplier, CALB, for its new electric vehicle models by helping them improve over 1,000 production and product indicators.
- CALB (China Aviation Lithium Battery Co., Ltd.)
中创新航 - According to the article, CALB (China Aviation Lithium Battery Co., Ltd., 中创新航, 03931.HK) is mentioned as a new battery supplier supported by GAC Toyota for its new electric vehicle models. Toyota chose CALB and sent a team to help it improve over 1,000 production and product indicators, aiming to reduce costs despite recognizing CATL’s battery quality.
- Geely Automobile Holdings
吉利汽车控股集团 - According to the article, on April 23, Geely Automobile Holdings announced the integration of its battery-related businesses to form a new battery industry group called “Jiyao Tongxing.” This move indicates Geely's continued commitment to developing in-house battery technology and production, aligning with an industry trend among automakers to focus on self-developed and self-produced batteries.
- Jiyao Mobility
吉曜通行 - According to the article, Jiyao Mobility ("吉曜通行") is a new battery industry group formed by Geely Automobile Holdings Group. On April 23, Geely announced the integration of its battery-related businesses to establish Jiyao Mobility, aiming to strengthen its capabilities in battery self-research and production amidst increasing industry competition and a trend among automakers to develop their own batteries.
- Great Wall Motors
长城汽车 - According to the article, Great Wall Motors (601633.SH) continues to support its in-house battery company, SVOLT Energy. This indicates Great Wall Motors' commitment to self-develop and produce batteries, rather than solely relying on external suppliers like CATL, as part of a broader trend among automakers to pursue greater control over their battery supply chains and cost structures.
- SVOLT Energy Technology
蜂巢能源 - SVOLT Energy Technology is mentioned in the article as "蜂巢能源," supported by Great Wall Motors (长城汽车). It is one of the battery companies that car manufacturers, like Great Wall, continue to back for self-developed battery production. This reflects the wider industry trend where many automakers pursue in-house battery capabilities to reduce reliance on third-party suppliers like CATL and to enhance cost competitiveness.
- Volkswagen Group
大众汽车集团 - According to the article, Volkswagen Group is committed to developing its own batteries and has invested in the Chinese battery company Gotion High-Tech (国轩高科, 002074.SZ) as part of its efforts to achieve battery self-sufficiency and reduce reliance on external suppliers like CATL.
- Gotion High-tech
国轩高科 - According to the article, Gotion High-tech (国轩高科, stock code: 002074.SZ) is a Chinese battery company in which Volkswagen Group has invested. Volkswagen is working on developing its own batteries and has chosen Gotion High-tech as one of its partners for this purpose. This reflects the ongoing efforts of automotive companies to diversify battery suppliers and strengthen self-sufficiency in battery technology.
- Ford Motor Company
福特汽车 - According to the article, CATL has proposed a "technology licensing service" solution and established cooperation with Ford Motor Company. This comes after CATL's investment plans in the United States faced restrictions due to policy barriers caused by the Inflation Reduction Act and related "foreign entity of concern" guidelines, preventing CATL from building factories locally in the U.S., Canada, or Mexico.
- Tesla, Inc.
特斯拉 - According to the article, Tesla, Inc. (NASDAQ: TSLA) is mentioned as a potential partner for CATL's "technology licensing services" plan. Due to high policy barriers in the U.S., CATL cannot currently build factories there and is exploring partnerships with automakers like Ford and possibly GM and Tesla to offer battery technology licensing instead of direct manufacturing in North America.
- General Motors
通用汽车 - According to the article, CATL considered establishing operations in the U.S., Canada, or Mexico but was restricted by U.S. policy. Instead, CATL proposed a "technology licensing service" and reached a cooperation agreement with Ford. It is also mentioned that Tesla and General Motors (GM) could potentially be cooperation partners for CATL's technology licensing approach.
- LG Energy Solution
LG新能源 - According to the article, LG Energy Solution is one of CATL's main overseas competitors. The company has rich experience in international operations and, along with other Korean and Japanese firms, is now investing in lithium iron phosphate (LFP) battery development—a field where CATL excels. This move signals strong competitive intentions from Korean and Japanese battery makers to challenge CATL’s dominance in the global battery market.
- SK on
SK on - The article mentions SK on as one of CATL's "old rivals" from Korea, alongside LG Energy Solution and Samsung SDI. These companies have extensive overseas operating experience and are now also developing lithium iron phosphate (LFP) batteries—an area where CATL excels—indicating their intention to challenge CATL's dominance and reshape the global battery market landscape.
- Samsung SDI
三星SDI - According to the article, Samsung SDI is mentioned as one of CATL’s "old rivals" in the battery industry, along with Korean companies LG Energy Solution and SK on, and Japanese company Panasonic. These competitors have rich overseas operational experience and have begun developing lithium iron phosphate (LFP) batteries to compete directly with CATL’s specialty in the global battery market.
- Panasonic Corporation
松下 - According to the article, Panasonic is mentioned as a Japanese battery company and a competitor to CATL (Contemporary Amperex Technology Co., Limited). Along with Korean companies LG Energy Solution, SK on, and Samsung SDI, Panasonic is highlighted for having extensive overseas operational experience and is now investing in lithium iron phosphate battery development to compete with CATL’s strengths in the global battery market.
- Ships Technology Co., Ltd.
电船科技有限公司 - Ships Technology Co., Ltd. (电船科技有限公司) was established by CATL (Contemporary Amperex Technology Co., Limited) in November 2022. The company represents CATL's efforts to expand beyond traditional power battery business, focusing on developing battery solutions and technology for ships and marine applications as part of its broader strategy to explore new growth areas.
- Commercial Aircraft Corporation of China, Ltd. (COMAC)
中国商用飞机有限责任公司 - According to the article, in July 2023, CATL (Contemporary Amperex Technology Co., Limited) and COMAC (Commercial Aircraft Corporation of China, Ltd.) jointly established a new company called COMAC Times (Shanghai) Aviation Co., Ltd. This venture aims to explore battery applications in commercial aircraft, marking CATL’s entry into the aviation sector alongside China’s leading commercial airplane manufacturer.
- COMAC CATL (Shanghai) Aviation Co., Ltd.
商飞时代（上海）航空有限公司 - COMAC CATL (Shanghai) Aviation Co., Ltd. is a joint venture established in July 2023 by CATL and Commercial Aircraft Corporation of China (COMAC). The company aims to develop and commercialize battery technologies for the aviation sector, focusing on applications such as electric commercial aircraft. This is part of CATL’s strategy to expand beyond automotive batteries and explore new growth areas.
- Huawei Digital Power
华为数字能源公司 - Huawei Digital Power has introduced megawatt-level charging products tailored for electric heavy trucks, providing a maximum charging current of 2,400A and peak power of 1.5 MW. The company plans to collaborate with battery makers and auto manufacturers to develop new vehicle models, with over 20 ultra-fast-charging heavy trucks expected in 2025. Huawei Digital Power has also installed robotic arms on chargers to automatically locate vehicle charging ports.
- Baidu, Inc.
百度 - According to the article, Baidu operates the "Robotaxi" autonomous driving taxi network called "Luobo Kuaipao" in China. In February 2025 and April 2025, CATL partnered with Baidu and other companies to integrate automatic battery swapping with autonomous vehicles, considering them a perfect match to advance the new energy and smart mobility ecosystem.
- CalPower
卡尔动力 - CalPower is mentioned as a company focused on autonomous driving technology for the freight sector. In February and April 2025, CATL signed strategic cooperation agreements with Baidu and CalPower, targeting the integration of automatic battery swapping with autonomous driving applications. CalPower specifically aims at applying these solutions within the logistics and freight transportation industries.
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