CATL looking to expand battery-swapping business to Europe

Until now, CATL had only confirmed plans to build 1,000 battery-swapping stations in China by the end of this year, and – in cooperation with partners – 10,000 stations within the next three years. But in an interview with the Financial Times, Jiang Li suggested that this business model could be replicated in Europe and other markets. He also revealed that CATL has already held talks with local car manufacturers about deploying the swapping technology.

Unlike plug-in charging, battery-swapping involves non-permanently installed battery packs. Empty batteries can be exchanged for fully charged ones within minutes at dedicated stations. This reduces the upfront cost of electric vehicles, as customers lease the batteries instead of buying them outright.

Outside of China, however, battery-swapping has not gained significant traction – mainly due to the high cost of building the necessary infrastructure. That said, Nio currently operates around 60 stations across Germany, the Netherlands, Norway, Sweden and Denmark. This marginal status could soon change. As the Financial Times notes, Jiang Li’s remarks come at a time when Brussels is ramping up pressure on Chinese firms to enter the EU market via joint ventures or technology licensing agreements.

“We are facing some difficulties in geopolitics, but we are still open to cooperating, especially in research and development,” Li said. “We don’t want to make money with only one company. We want to share.”

CATL’s ambitions to become a serious player in the battery-swapping segment were made clear last winter. In December 2024, the world’s largest battery manufacturer unveiled two standardised battery packs as part of its Choco-SEB system. SEB stands for ‘Swapping Electric Blocks’, while ‘Choco’ alludes to the visual appearance of the packs, said to resemble chocolate bars.

The Choco-SEB concept was first introduced in 2022 when CATL subsidiary CAES (Contemporary Amperex Energy Service Technology) launched its Evogo battery-swapping solution. The idea at the time was to allow flexible use of multiple blocks depending on vehicle size and use case – fewer for short urban trips, more for long-distance driving.

The packs presented in December, however, come in two fixed sizes: the 20# pack is intended for small cars with a wheelbase between 2.20 and 2.30 metres, while the 25# pack is designed for vehicles up to 2.90 metres in wheelbase. The first compatible model – the Oshan 520 by Changan – is already available in China. It’s unlikely to remain the only vehicle using CATL’s swapping network for long: a total of ten compatible models are due to launch this year, including the GAC Aion S, Hongqi E-QM5, SAIC Maxus Mifa 9 and the compact Wuling Bingo.

CATL’s target of 1,000 battery-swapping stations in China by the end of 2025 covers passenger cars. Thousands more are expected to follow, including 300 stations specifically for electric trucks, which will use a dedicated 75# battery block.

In April, rumours also emerged that CATL might acquire a majority stake in Nio’s battery-swapping business – Nio being the original pioneer of this technology. The car brand currently operates more than 3,000 swapping stations in China. The two companies have been in discussions for some time and in March announced a wide-ranging partnership: CATL plans to invest up to 2.5 billion yuan (over €310 million) in Nio Power, the energy subsidiary of Nio. Conversely, Nio’s new compact car brand Firefly is set to adopt CATL’s Choco-SEB system starting with its second model. CATL also serves as the primary cell supplier for Nio’s electric vehicles.

ft.com (paywall)