In Depth: Why CATL Is So Revved Up About Battery Swapping Stations

Contemporary Amperex Technology Co. Ltd. (CATL), China’s leading EV battery manufacturer, is intensifying its focus on battery swapping stations as a new growth avenue amid increasing competition and technological shifts in the electric vehicle (EV) industry [para. 1]. In December, billionaire founder and chairman Zeng Yuqun unveiled ambitious plans to have 1,000 battery swapping stations operational across China by the end of the year, furthering CATL’s long-term goal of constructing 30,000 stations nationwide. These stations enable EV drivers to efficiently replace depleted batteries with fully charged ones within minutes, providing a rapid solution for recharging and alleviating range anxiety [para. 2].

CATL has formed strategic alliances to accelerate implementation. On March 18, it partnered with Nio Inc. to offer swapping services for Nio’s new Firefly brand. By April 2, CATL, together with state-owned China Petroleum & Chemical Corporation, agreed to build 500 stations within the year. Later in April, CATL joined forces with five leading domestic automakers—including FAW Group, Changan Automobile, and Guangzhou Automobile Group—to launch 10 EV models compatible with CATL’s battery swapping technology [para. 3][para. 4]. These partnerships exemplify CATL’s multi-pronged approach, leveraging both industry alliances and technological standardization [para. 4].

With over three years in the battery swapping business, CATL seeks to address enduring concerns over EV range and charging time [para. 5][para. 6]. The company already produces some of the world’s fastest-charging and most durable batteries, and expansion into swapping stations offers a new revenue stream while reinforcing CATL’s technological leadership [para. 6]. Moreover, battery swapping broadens CATL’s customer base beyond automakers and promotes a viable alternative to fast-charging, further diversifying its market position [para. 7].

CATL’s journey in battery swapping began in January 2022 with the Evogo service, allowing drivers to swap batteries in about one minute [para. 8]. Simultaneously, it introduced the Choco-SEB swappable battery, compatible with 80% of pure EV models globally and offering up to 200 kilometers per swap. By December 2024, CATL improved the technology, unveiling two standard battery packs—produced with different chemistries—for ranges up to 600 kilometers [para. 10]. For commercial vehicles, the Qiji system launched in June 2023 enables heavy-duty electric trucks to swap up to three battery packs, each capable of 15,000 recharge cycles [para. 11]. Partnerships with ride-hailing giant Didi further support battery swapping adoption, extending into joint ventures for operational services and equipment sales since January 2024 [para. 13][para. 14].

This pivot helps CATL counter industry challenges such as automakers developing in-house batteries and fierce price competition, especially from rivals like BYD and CALB Group. Battery swapping positions CATL to generate revenue directly from drivers and station operators, with batteries leased to operators and ultimately repurposed or sold at end-of-life [para. 17][para. 19]. CATL’s vertical integration—controlling both battery production and swapping infrastructure—affords a profitability advantage due to longer battery lifespans [para. 21].

Yet, battery swapping faces competition from rapid advances in fast-charging technologies pioneered by companies such as BYD and Huawei. In response, CATL continues to innovate with its Shenxing battery, capable of adding 520 kilometers range in just five minutes of charging [para. 29]. Fast-charging comes with safety concerns, as highlighted by regulatory requirements for extra testing after 300 rapid charges [para. 31]. Thus, experts suggest battery swapping and fast-charging will likely co-exist alongside home charging, catering to various user needs [para. 32][para. 33].

In summary, CATL’s aggressive expansion into battery swapping—driven by partnerships, technological advances, and a strategic push to diversify revenue—positions it to address key industry pain points, strengthen competitiveness, and ensure resilience amid a rapidly changing EV landscape [para. 1][para. 5][para. 17][para. 33].