China’s Nio raises US$2.6 billion bet on EV battery swapping, plans to add 1,000 stations

Chinese electric vehicle (EV) maker Nio plans to add another 1,000 battery swapping stations to its network this year, adding to its US$2.6 billion bet on the technology despite a challenge from fast-charging batteries as it touts its 100 millionth swap.The company’s 3,729 stations allow owners of compatible Nio EVs to exchange a spent battery pack for a charged one in just three minutes, and most navigate the car into position automatically. Created to ease anxiety over range and slow charging, the concept is under increasing pressure as advanced batteries reduce charging times in conventional EV designs.William Li, co-founder and CEO of Hong Kong-listed Nio, made the pledge to add 1,000 swap stations on Monday, saying in a statement that the milestone of 100 million swaps signified that the technology had been “fully accepted” as “a major option for charging and replenishing energy for electric cars in China”.Shanghai-based Nio is the only mainland carmaker that builds swap-ready EVs, but it has formed partnerships with several companies, including Geely, the mainland’s second-largest automotive group, and FAW, China’s oldest vehicle builder, to jointly develop and promote swapping.“Battery swap has emerged to be an option for the EV industry, but it remains to be seen whether millions of new cars will adopt the technology in future,” said Davis Zhang, a senior executive at Suzhou Hazard­­tex, a supplier of specialised batteries. “Ultra-fast charging technology is becoming more popular.”Advanced batteries now allow some premium electric cars to take on enough charge for up to 500km of driving range in 10 minutes.Nio launched its first swap station in Shenzhen in May 2018 and has invested a total of 18 billion yuan (US$2.6 billion) to develop the technology, according to the statement.