Car companies and battery manufacturers work together in battery swap station

Car companies and battery manufacturers work together in battery swap station

Table of Contents

Recently, SAIC revealed that the first “vehicle electricity separation” new energy electric vehicle cooperating with CATL is delivered at the end of October. It is reported that vehicle companies such as NIO and GEELY are working together with battery companies to achieve the development goals of new energy vehicles such as cost reduction and rapid energy supplement through “vehicle electricity separation”.

SAIC first battery swap station is stepping up commissioning

On October 17, 2022, the commissioning of the first battery swap station of RISING AUTO under SAIC is being accelerated. Based on the new reinforced battery quick change technology, after the power station is officially put into operation, the electric vehicle can complete battery replacement in only 2 minutes and 30 seconds.

In fact, it is not just a company that wants to do the electricity exchange mode, but SAIC, together with CATL and other companies, has established a large electricity exchange network in the new energy electricity exchange ecology to do a good job in investment and service for the future electricity exchange business.

It is reported that R7, the first “vehicle electricity separation” new energy electric vehicle, will be delivered to users from the end of October 2022.

As the largest vehicle manufacturing listed company in China, SAIC, together with CATL, Sinopec, CNPC, Shanghai International Auto City and other companies, established Jieneng Zhidian New Energy Technology on September 22, with a registered capital of up to 4 billion RMB. Among them, SAIC holds 37.5% shares and CATL holds 12.5% shares.

According to the planning of SAIC, Jieneng Zhidian New Energy Technology will focus on the power battery leasing business to carry out power replacement technology research and development promotion, battery operation management, big data services and other businesses. SAIC will successively introduce new energy for electric vehicles, covering all categories such as SUV, sedan, MPV and commercial vehicles.

Under the framework of this cooperation, SAIC provides vehicles, CATL is responsible for batteries, Sinopec and CNPC help to layout the network. According to the schedule, in 2022, RISING AUTO will build nearly 40 integrated service energy stations to provide power exchange services. It is estimated that 300 will be built in 2023, and the scale will be nearly 3000 in 2025.

The electric vehicle can complete battery replacement in only 2 minutes and 30 seconds

CATL set up new battery swap station business in various places

In addition to cooperation with SAIC, CATL also shares in Weining Battery Assets, a subsidiary of NIO, accounting for 10.68%. Weineng Battery Assets is a battery asset management company based on the “vehicle electricity separation” mode, providing services such as vehicle electricity separation, battery rental, charging and upgrading.

As the leader of power battery, CATL released the power replacement brand “EVOGO” at the beginning of 2022. EVOGO will provide power exchange service for all models on the market through unified battery interface and universal adaptation for all vehicle companies.

The pace of new power replacement business in CATL is getting faster and faster. Recently, CATL set up two new energy companies in Guizhou, China, whose business scope includes the sale of new energy replacement facilities.

As a new business model vehicle electricity separation has many advantages

Vehicle electricity separation means that the new energy electric vehicle is no longer regarded as a whole commodity, but the automobile field is operated according to the automobile mode, and the power battery field is operated in another business mode. As a new business model, vehicle electricity separation has brought many benefits.

● Social value

From the perspective of social value, the separation operation mode of vehicle and electricity is of great positive significance to the promotion of new energy vehicles in three dimensions of cost, efficiency and safety.

● Cost

From the perspective of cost optimization, the battery cost accounts for 40% to 50% of the total cost of electric vehicles. The separation of vehicle and electricity can greatly reduce the cost of car purchase for consumers and solve a major problem in the promotion of new energy vehicles.

● Electric vehicle price

Vehicle electricity separation has certain effect on the reduction of the price of new energy electric vehicles. Taking the upcoming R7 as an example, if consumers are willing to choose the mode of “vehicle electricity separation” to purchase a car, they can enjoy a discount of 100000 RMB.

As a new business model, vehicle electricity separation has many advantages● Quick energy supplement

The power change mode can also greatly promote the quick energy supplement of electric vehicles. There is still a big gap between the charging time of new energy vehicles and that of traditional fuel vehicles. The relatively long charging time is still one of the main problems for new energy vehicle consumers.

Quick energy supplement is a key factor in the popularity of electric vehicles. The power change can be completed in a few minutes, which is more in line with consumers’ car habits than the fast charging mode of nearly half an hour.

● Safety

In terms of safety, battery swapping has certain advantages over charging. New energy vehicles often have overcharge and overdischarge during use, which will cause damage to the power battery, and then lead to the decline of battery capacity. The battery swap station will conduct centralized professional charge and discharge management on the battery, which is safer than personal charging mode.

In addition, the vehicle electricity separation also promotes the convenient use of two wheel electric vehicles. At present, China has more than 350 million electric vehicles, with an annual sales volume of 40 to 50 million, and an annual output value of about 200 to 300 billion. In fact, in China, the demand for electric bicycles exceeds 500 million people.

Assuming that the average daily demand for electric bicycles is 700 million times, according to the user’s habit of using electricity every 2 days, the demand for changing electricity every day is 200 billion times.

In recent years, the demand for replacing charging with replacement has been further released. The battery swapping of two wheeled vehicles also has the advantages of price, quick energy supplement and high safety.

At present, the electric motorcycle battery swap system has been promoted to varying degrees in China and even around the world. In addition, compared with electric vehicle battery swapping, the threshold and cost of entering the two wheeled vehicle power exchange market are lower, which can be regarded as a business model with low investment and high return.

CATL set up new battery swap station business in various places

Cost shall be considered for battery swap mode

The promotion of battery swap mode needs to consider the actual situation such as cost. According to statistics, since 2022, 9 companies in the field of power exchange in China have completed 10 financing cases in total, and the “separation of vehicle and electricity” has become a hot subdivision track in the new energy industry chain.

According to the forecast, the number of new power exchange stations in China is expected to exceed 3000 in 2022, and it is expected that by 2025, the number of new power exchange stations will exceed 10000, and the corresponding equipment investment and operating income of the battery swap industry will reach 100 billion RMB.

Many companies have also made clear the new plan for the construction of battery swap station: Aulton plans to replace 10000 power stations by 2025; NIO plans to add 600 new battery stations every year from 2022 to 2025; GCL plans to build 300 power stations by 2022 and more than 6000 by 2025; GEELY plans to build more than 5000 replacement power stations by 2025.

Although the user experience of power replacement is better, the construction cost is not low. The amount of investment in a single station for passenger vehicle to power station is close to 5 million RMB, and the net interest rate of a single station is about 18% based on 100 vehicles serviced every day. It can be inferred that the investment return period is more than 5 years.

Taking NIO as an example, the average cost of the company to build a single power exchange station in China is about 772000 dollars, and the return period is about 6.5 years. With the operation cost, the specific return period will be longer, and it is difficult to make profits through the power exchange mode in a short time.

The vehicle electricity separation mode requires that the vehicle companies and battery companies complement each other. The power generation, energy storage, and charging and changing terminals can form an industrial closed loop. The scale effect under the complementary advantages can reduce the costs of all links, while meeting consumers’ needs for cost reduction and rapid energy supplement, and achieving a win-win situation.

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