Navigant Research Report Shows Rapid EV Growth and Battery Cost Declines Are Creating a Renewed Interest in Battery Swapping
A new report from Navigant Research examines the challenges and opportunities currently faced by organizations seeking to promote electric vehicle (EV) battery swapping.Rapid EV Growth and Battery Cost Declines Are Creating a Renewed Interest in Battery Swapping
Initial battery-swapping efforts during the early 2010s sought to allow battery EV (BEV) owners to quickly replace batteries, offering drivers practically unlimited driving range. However, the high cost of batteries and low number of vehicles that could access swap stations ultimately led to its market failure. According to a new Navigant RSRCH report, a renewed interest in battery swapping has coincided with dramatic decreases in battery costs per kilowatt-hour and rapid growth in the EV market.
“Cost reductions, emissions concerns, and urban air pollution have helped bring focus to EV use, specifically in urban areas,” says Scott Shepard, senior research analyst at Navigant Research. “These dynamics have provided opportunities for battery-swapping niches to emerge.”
To position for success in this market, Navigant Research recommends consideration of battery swapping for providers of micro e-mobility solutions (e.g., e-scooters, e-rickshaws, and low speed vehicles) and for automakers that need to differentiate in an increasingly competitive light duty EV market. Meanwhile energy, charging infrastructure, and battery suppliers should monitor developments of this technology closely to identify research and development partnerships with EV suppliers.
The report, Emerging Opportunities for Battery Swapping in a Fast-Changing EV Market, gives an overview of the challenges and opportunities currently faced by organizations seeking to promote battery-swapping. It identifies market segments that offer the best prospects for fostering the nascent battery-swapping market and recommendations for decision makers. This report’s findings are especially relevant to EV suppliers who need to determine whether battery swapping makes sense.