Electric cars: swappable batteries could be the way to revive flagging sales

The rate of adoption of electric vehicles in western countries continues to wane. In the UK, EVs’ market share of all new cars for 2024 will barely hit 20%, somewhat below the government goal of 22%. New car registrations of hybrid cars have grown at almost double the rate of battery EVs in the first four months of the year.

The model has had a chequered history, but is thriving in some places. Notably, India has created a huge market for with swappable batteries, thanks to government subsidies. These vehicles’ share of new sales within the category rose from 5% in March 2023 to 25% in March 2024. It takes a long time to charge EVs. Even using a fast charger, a full charge can require well over an hour. A charging station is occupied for that time, so other cars must queue or go elsewhere.

A big part of the cost is the battery. Batteries have been getting cheaper over the years, but still account for nearly one third of purchase prices. Slow charging speeds and consumers’ “range anxiety” – concerns that EVs don’t go far enough on a single charge – have both created a need for bigger batteries. These use up more critical minerals like cobalt and nickel, raising the potential for supply problems in future.

Battery swapping 2.0 Battery swapping was supposed to take off in the late 2000s, when US start-up Better Place raised some $850 million to build a global network. It partnered with Renault to create the Fluence ZE, an EV with swappable batteries. ADVERTISEMENT CONTINUE READING BELOW However, Better Place filed for bankruptcy in 2013, having built swapping stations too aggressively and failed to get other manufacturers onboard.

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