When BYD made a major move in early March, launching its second-generation blade battery and megawatt flash charging technology, compressing charging time to single digits, and announcing the construction of a large number of flash charging stations, the pressure of “extreme energy replenishment” was back on CATL.
Unsurprisingly, a little over a month later, CATL unveiled a major breakthrough at its Super Tech Day new product launch: the third-generation Shenxing ultra-fast charging battery set a new global record for power battery charging rate, reaching full charge in just six minutes at room temperature. Similarly, CATL also offered an additional solution, proposing for the first time a full-scenario energy replenishment network plan integrating ultra-fast charging and battery swapping.
“It’s not just putting swapping stations and ultra-fast charging piles together, but completely integrating the underlying architecture to achieve global optimization of energy efficiency, replenishment experience, and asset utilization.” Yang Jun, General Manager of CATL’s swapping business, explained. Yang Jun is also CEO of CATL’s subsidiaries, Times Electric Services and Times Qiji, which focus on passenger car and commercial vehicle swapping businesses respectively.
Under ideal conditions of CATL’s latest solution, the integrated ultra-fast charging and swapping station shares the box-type substation and charging modules, reducing energy conversion steps, with an overall power loss rate more than 13 percentage points lower than that of charging stations with energy storage on the market. In case of emergency, the swapping station’s batteries can be used to discharge to charging piles, achieving equipment reuse rates of over 85%. The service capacity per parking space is three times that of a charging station with energy storage, and the fixed investment cost for the ultra-fast charging part is only one-fifth of the latter.
Yang Jun believes that the so-called ultra-fast charging and swapping linkage, from a technical essence, solves two old problems of ultra-fast charging: energy conversion efficiency and grid friendliness. He also pointed out, “The ultra-fast charging solution with energy storage can only be considered a transitional solution.”
It is worth mentioning that, as Yang Jun stated at a media communication meeting, one of the upgrades of the “ultra-fast charging and swapping integration” solution is to improve resource utilization. “The energy replenishment industry faces huge challenges today, with almost the entire industry suffering losses and very low utilization rates.” Yang Jun admitted that while the demand side has huge needs, the supply side has very low utilization rates, which is an unusual industry situation.
In fact, currently both charging stations and swapping stations face difficulties such as low utilization rates, supply-demand mismatch, and profitability pressure. Taking swapping stations as an example, a single station without batteries requires an investment of several million yuan, but the industry as a whole is still in the early stages of “land grabbing” development, making it difficult to discuss asset efficiency.
Additionally, regarding external concerns about the necessity of battery swapping given the extreme ultra-fast charging speeds, Yang Jun emphasized that although public evaluations of swapping focus on “speed” and “good experience,” these are only superficial advantages. He believes more attention should be paid to two deeper levels of understanding of swapping: vehicle-battery separation and the social value behind swapping.
Regarding the former, Yang Jun believes that vehicle-battery separation itself reduces the initial purchase cost. The more attention paid to battery technology iteration, the more it becomes clear that renting is better than buying, because swapping leaves the anxiety to the third-party battery holder. “The physical properties of the battery determine that it will inevitably degrade. Although our batteries are made very well with a gentle degradation curve, they still degrade. Why should consumers bear this degradation?” He said he has always advocated that renting is better than buying, and one advantage is that the battery can be upgraded.
Yang Jun also mentioned that batteries should be recycled and reused as a whole for sustainable development of new energy. “In fact, even for lead-acid batteries, mandatory national recycling has been implemented for over 10 years, but the recycling rate through formal channels has just exceeded 50%. Therefore, in the future, vehicle-battery separation can better promote planned recycling and planned remanufacturing, becoming a source of sustainable development.”
Yang Jun also responded at the communication meeting that CATL and NIO’s swapping are strategic partnerships. “There are not many players on this track, but it is easier for everyone to reach a consensus on the underlying understanding.” He mentioned that the most important issue they need to solve is standardization. “Charging has a national standard, but swapping currently does not. So we have reached a consensus to jointly promote the achievement of China’s national swapping standard, ultimately allowing consumers to avoid making difficult choices.”
At the end of 2024, CATL Chairman Zeng Yuqun predicted at the Chocolate Swapping Ecosystem Conference that by 203