homeauto NewsHow battery swapping technology can make electric cars affordable

How battery swapping technology can make electric cars affordable

How battery swapping technology can make electric cars affordable
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By CNBCTV18.com Dec 10, 2021 4:25:48 PM IST (Updated)

Owning and using an EV has its own set of challenges. These include high vehicle cost, operational range, battery replacement cost and long charging time of batteries. Adoption of battery swapping or battery-as-a-service model can be a solution to these challenges. This allows customers to lease batteries as a separate component of the car, which helps the EV owner save on purchase cost and address shorter range issues. The process is also less time-consuming.

Despite being a clean-tech solution to environmental pollution, the path to owning an electric vehicle (EV) is fraught with daunting challenges such as high vehicle cost, operational range, battery replacement cost, and the long charging time of batteries. Amid these challenges, the adoption of battery swapping or the battery-as-a-service (BaaS) model can be an ideal solution in terms of sustainability for the EV market.

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What is battery swapping or battery-as-a-service (BaaS)
Battery swapping or battery-as-a-service allows customers to lease batteries as a separate component of the car. The customer can take out the discharged battery and change it with a fully charged one. Battery leasing can help the EV owner save purchase costs and address shorter range issues. The service is also less time-consuming and requires minimum infrastructure compared to charging the battery at a station. These advantages make the battery-as-a-service model a viable option for EVs, driving future adoption.
Owing to the high penetration of EVs in Sweden, Norway and the Netherlands, Europe remains a major market for the battery-as-a-service model.
The EV market in India, although at a nascent stage, is witnessing an uptick in investments and is expected to grow at a 90 percent compounded annual growth rate (CAGR) in the next 10 years to reach $150 billion by 2030, consulting firm RBSA Advisors said in a recent report.
The Indian government has been pushing for the adoption of EVs and is looking to make 30 percent of private cars, 70 percent of commercial vehicles, 40 percent of buses and 80 percent of two- and three-wheelers go electric by 2030, the BBC reported.
According to the Delhi-based think tank Council on Energy, Environment and Water (CEEW), two- and three-wheelers are on their way to that target.
The rapid adoption of electric and connected mobility can help India save nearly one giga-tonne of carbon dioxide emissions by 2030, the RBSA Advisors report said.
Buoyed by the growth in the market, companies like Reliance Industries, BP and Mahindra are exploring ways to create new products and services for EVs.
The Mahindra Group recently signed a partnership with Jio-BP, a joint venture between BP of UK and Reliance Industries, to explore EV and low-carbon solutions, including battery swapping technology options, for electric 3-wheelers, Anish Shah MD, Mahindra Group, told CNBC-TV18. The partnership will explore mobility-as-a-service and battery-as-a-service business models.
As part of the deal, Jio-BP will help Mahindra with battery swapping and in setting up charging infrastructure, Shah said. Locations of the Mahindra Group and its channel partner will soon be evaluated for the purpose of setting up Jio-BP mobility stations and EV charging and swapping points.
EV owners can now buy a vehicle without the battery and lease it from an energy operator. As the entire process of battery swapping takes less than five minutes, it increases the rider’s efficiency. It also reduces the cost of the vehicle by 30-50 percent by converting the battery from the capital cost to the operational cost.
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