Nio, Inc. (NYSE:NIO) has popularized battery swapping by setting up a network of battery swap stations and China and offering it as a service. A new report says the EV maker may soon have to contend with competition in this arena.
What Happened: CATL, the world’s biggest battery manufacturer, is planning to dip a toehold into battery swapping, the CnEVPost reports, citing a post by the company on its Weibo account.
China’s CATL is the battery supplier to the industry leaders like Nio and Tesla, Inc. (NASDAQ:TSLA) and boasts of a 31.8% share of the overall market. The launch event will be held Tuesday at 3:30 pm Beijing Time.
The battery manufacturer has reportedly branded the service as EVOGO and has not provided many details about the new initiative.
CATL’s battery swap service will be available to all EV companies, CnEVPost reported, citing a local media outlet. The service will be initially rolled out to cabs and then be made available to consumers, the report added.
Related Link: Apple in Talks with Tesla Supplier CATL for Battery Supply Deal: Report
Why It’s Important: CATL is the top battery manufacturer in China, and in 2021 it reportedly commanded a 52.1% of the market. The planned foray into battery swapping would be a logical extension for the company to leverage its dominant position in battery manufacturing.
The battery assets related to the Battery-as-a-service offering announced by Nio in 2020 is being managed by Mirattery, a joint venture company led by CATL and Nio.
Nio has indicated that its extensive battery-swapping network is also available for other car companies. With CATL joining the fray, it remains to be seen how the competitive dynamics will pan out in the battery swapping service sector.
Related Link: Tesla Supplier CATL To Invest Up To $6B In Lithium-Ion Battery Projects
Photo: Courtesy of bfishadow on Flickr