Electric Vehicle (EV) manufacturers are apparently in talks with the government to develop a specific strategy to separate the battery from the EV and create a nationwide battery-swapping infrastructure.
Industry insiders believe that a country-wide move for such infrastructure can boost EV adoption. The battery accounts for 30%-40% of the total cost of an EV. The battery is not included in the cost of the vehicle in the swappable model, which addresses the issue of affordability by reducing the cost of the EV.
According to the industry experts, swappable batteries in the long run can be more cost-effective than traditional charging and can save drivers’ time and money.
Swapping a battery takes only a few minutes, compared to hours for traditional charging. This is a major advantage for fleets of vehicles that need to be on the road all day such as taxis and ride-hailing services.
It is also believed that with swappable batteries, drivers don’t have to worry about running out of power. They can simply replace their depleted battery with a fully charged one in minutes. This will help to reduce range anxiety, which is one of the main barriers to EV adoption.
Swapping batteries can also help to extend the life of a battery pack.
This is because the batteries are not constantly being cycled, which can lead to degradation.
The Roadblocks
One of the challenges is there is no single standard for swappable batteries, which can make it difficult for different companies to work together. Additionally, it is said the cost of setting up a swappable battery network can be high.
In May, Pramod Kumar Tiwari, Director General of BIS, said they are working on battery swapping standards, which would take about three months to formulate.
Industry View
Considering the advantages, Varun Goenka, Co-Founder & CEO of Chargeup, told News18 that battery swapping is the best solution to catalyse EV adoption, even if subsidies are withdrawn.
“We need a simple mechanism to register the vehicle without a battery. The mechanism can be replicated in the CNG industry. We can witness consistently high growth for EVs if the ownership of vehicle and battery are separate, where battery swapping can solve the real estate issues and grid stability as well while making EVs affordable and free from range anxiety,” Goenka added.
Ankit Mittal, CEO of Sheru, stated that the swapping model complements charging rather than competing with it, and for segments such as commercial vehicles, battery swapping makes immense sense.
“This is because decoupling the battery from the EV reduces the upfront cost, the subscription mode of renting the battery makes ownership affordable while giving the benefit of an EV and there is near zero turnaround time as an empty battery is replaced with a fully charged one almost instantly and users don’t have to worry about the maintenance of the battery,” he explained.
Furthermore, the industry insider said since battery swapping requires no large capital investment, it helps commercial vehicles quickly shift to e-mobility, helping the EV sector charge ahead faster.
“However, regular charging would still be preferred by personal vehicle users and will continue to grow there. And battery swapping will appeal to commercial vehicles,” he noted.
Meanwhile, Kalyan C Korimerla, MD and Co-Promoter, Etrio, believes that it is imperative to establish a nationwide policy that not only supports rapid swapping capabilities, scalability and flexibility but also ensure interoperability, standardisation and prolonged battery lifespan.
Korimerla said: “Given the evolving and expansive nature of the EV landscape, introducing interoperable swapping facilities across the country will not only address range anxiety but also bolster the stability of the electric grid. This is particularly important as India’s reliance on intermittent renewable energy sources like wind and solar power increases.”
“Battery swapping stations can effectively utilize surplus energy during non-peak hours to charge batteries, making them available for use throughout the day. Investing in a comprehensive battery swapping network will cater to the evolving needs of EV users in India, promoting greater adoption and long-term sustainability,” Korimerla added.
Furthermore, he said a robust nationwide swapping policy will help to promote renewable energy and will serve as a catalyst for local manufacturing of batteries and battery swapping infrastructure. So, a policy push is necessary to accelerate the development of battery-swapping infrastructure, according to Korimerla.
“To achieve this, we need policies that encourage and streamline foreign direct investment inflow. We need to offer equal opportunities to both charging infrastructure and battery swapping infrastructure developers in terms of Financial Assistance to Manufacturers of Electric (FAME) II incentives, GST rates and capital expenditure (capex) investment support,” he noted.
It should be noted that India’s EV Battery swapping policy is currently under development. The draft policy was first released in April 2022 by NITI Aayog but it has not been finalised yet.
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