Batteries are the most expensive and fastest depreciating component of an electric vehicle. Thus, in a bid to reduce carbon emissions by up to 35% by 2030, the government of India has introduced a battery swapping policy that will boost the sale of electric vehicles (EVs).
Battery swapping solutions bring standardization and interoperability. Here Interoperability means that batteries built by one brand should work with not just their own EVs but those of other manufacturers as well.
The advantages associated with battery swapping solutions include quick replenishment of battery charge, the lower upfront cost of EVs, and relief from domestic charging woes, given that battery leasing will replace battery ownership.
Battery swapping, also known as battery-as-a-service allows customers to lease EV batteries as a separate component of the vehicle. Customers can remove the discharged EV battery and replace it with a fully charged one. Battery leasing can help EV owners to address range issues and save costs.
The global EV market is surging because of the increasing air pollution in urban areas. Presently, nearly 90% of India’s EV market is dominated by electric two-wheelers and three-wheelers with the latter occupying the lion’s share. Thus, electric two and three-wheeler customers benefit from this scheme. With battery swapping solutions in the market, there will effectively be far more EV batteries for the same number of vehicles on the road. According to the recent report by IEA, prices for battery materials like lithium carbonate increased by 150 percent, graphite by 15 percent, and nickel by 25 percent as compared to the previous year.
“Battery swapping policy will create new avenues for companies to venture into the business of battery swapping - Sohinder Gill, Director General at Society of Manufacturers of Electric Vehicles”
Key Providers of Battery Swapping Solutions in India
The companies in the battery swapping solutions market are likely to grow at a considerable rate. Importantly, four of the top-five electric two-wheeler manufacturers offer removable batteries. However, removable batteries are not the same as swappable ones. Battery swapping solution providers including SUN Mobility, Bounce Electric, Gogoro, Honda Motor, among others are expected to remain key players in the market over the coming period. Some of the recent developments in the battery swapping solutions market are,
- In January 2022, Japanese automaker Honda Motor through its subsidiary Honda Power Pack Energy India announced to start offering battery swapping service to electric three-wheelers in Bengaluru by June.
- In December 2021, Bengaluru-based electric vehicle maker Bounce Electric partnered with realty start-up unicorn NoBroker.com for providing battery swapping stations.
- In June 2021, Reliance BP Mobility Ltd, a joint venture between Reliance Industries Ltd (RIL) and UK’s energy major BP Plc was formed to test battery swap stations at over 24 select locations.
- In March 2021, SUN Mobility partnered with Tata power-DDL, a joint venture of Tata Power and the Delhi government, to set up a network of lithium-ion battery swapping stations in Delhi, India.
- Taiwan-based electric two-wheeler manufacturer Gogoro, the only company to have expanded across South Asia with its battery swapping solutions, has partnered with Hero MotoCorp. The company will now utilize Gogoro’s battery swapping technology for its upcoming e-scooters.
These companies and brands will have to adhere to the Indian government’s interoperability standards. RationalStat has assessed the global and regional battery swapping solutions market. The report covers the macroeconomic factors, market forecasting, market sizing, opportunities and challenges ahead, and the competitive landscape. For more info, contact us.
Also, Explore our Report on the Indian EV infrastructure Market
Co-founder and Director at RationalStat
Ujjwal is a thought leader and recognized expert in the market research and consulting field. He is the co-founder at RationalStat, a leading global market research & procurement intelligence firm with 10+ years of industry expertise.