“Behind the pain points also lies opportunities.”

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The first batch of new energy vehicles have begun to enter the battery swapping cycle, and the exorbitant cost of battery repair is astonishing.

Recently, a Mercedes-Benz owner posted a quote for a battery replacement costing up to 220,000 yuan. According to the quote, the cost is composed of lithium-ion batteries, high-voltage batteries, high-voltage vehicle system debugging, labor fees, and other items, totaling 226,143.35 yuan, of which the lithium-ion batteries alone account for 222,073.25 yuan.

Fortunately, however, this Mercedes-Benz EQC350 is still under warranty, and the 4S store and manufacturer have borne the full cost of the repair.

It is understood that the manufacturer's suggested retail price of the Mercedes-Benz EQC350 is 499,800 yuan, with some regional dealers quoting prices slightly over 300,000 yuan. A single battery accounts for more than half the total price of the vehicle.

The power battery is a core component of the electric vehicle assembly, and its high cost is undeniable. Battery swapping – that is, the separation of vehicle and battery – is gradually becoming the mainstream solution to this problem.

Affordable to buy, but unaffordable to repair?

In recent years, competition in the new energy vehicle market has intensified, and price wars have also intensified. For ordinary consumers, "180,000 yuan BMW i3" and "130,000 yuan Cadillac" are no longer dreams. However, in choosing between gasoline-powered vehicles and electric vehicles, there is still a threshold in front of consumers, namely the after-sales service and guarantee of electric vehicles.

As everyone knows, in terms of purchase cost, electric vehicles are exempt from purchase tax and supported by price wars; in terms of maintenance, electric vehicles do not require oil changes or filter replacements, and maintenance costs are low; in terms of energy consumption, electricity costs are much cheaper than gasoline. It can be said that in these three aspects, electric vehicles are superior to gasoline-powered vehicles.

However, the drawback of electric vehicles is also prominent, namely the extremely high cost of battery replacement. The cost of each kWh of a new energy vehicle battery pack is roughly above 800 yuan, and the cost of the battery generally accounts for about 40%-50% of the total cost of the vehicle.

Entering the early maintenance cycle of electric vehicles, news of sky-high battery swapping costs has emerged in recent years.

Recently, the price list for Zhiji Automobile's power battery replacements was exposed. Taking the new L7 model as an example, a 90 kWh battery, if calculated at 1,000 yuan per kWh, would cost approximately 90,000 yuan, but the actual battery swapping fee far exceeds this amount.

According to the price list, the cost of replacing the battery in the new Zhiji L7 exceeds 195,000 yuan, with the price of the parts alone being about 194,000 yuan and a labor fee of 731 yuan. Compared to the starting price of 299,900 yuan for the Zhiji L7, the cost of a single battery replacement accounts for two-thirds of the total cost of the vehicle. Moreover, as a brand under SAIC Motor, even with self-produced and self-sold batteries, the cost of battery swapping remains exorbitant.

Tesla, a giant in the electric vehicle industry, is not far behind in terms of battery replacement costs. According to existing cases, the cost of replacing a 100 kWh battery in the Model S/X is approximately 246,900 yuan, while the cost for the Model 3/Y is 126,900 yuan, also accounting for half the price of the vehicle.

The Xiaopeng P5, one of the new forces in the industry, is equipped with a 57.4 kWh lithium iron phosphate battery and a 1.3 kWh ternary lithium battery. The cost of the ternary lithium battery is 35,000 yuan, and the cost of the lithium iron phosphate battery is 45,000 yuan. Considering maintenance costs, the total cost is approximately 50,000-70,000 yuan.

From this perspective, the saying "electric vehicles save fuel, while gasoline-powered vehicles save worry" is not unfounded.

To alleviate users' concerns, most new energy vehicle companies offer an 8-year or 160,000-kilometer vehicle warranty, but they are reluctant to replace batteries for free, and the conditions are stringent.

Even BYD, which promotes lifetime warranty as its main selling point, has many restrictions.

Firstly, the user must be the first owner of the vehicle; secondly, the vehicle must undergo regular maintenance and upkeep according to BYD's regulations; and thirdly, the vehicle's mileage cannot exceed 30,000 kilometers in any 12-month period. This essentially disqualifies taxi and rental car owners from enjoying the lifetime warranty.

Although called "lifetime warranty," there may actually be a certain time or mileage limit. For example, BYD may offer an 8-year or 150,000-kilometer warranty period, whichever comes first.

Furthermore, BYD's lifetime warranty only covers the battery cell portion, and other components such as battery modules and battery packs are not covered by free replacement.

Buying a car is not a one-time transaction. Consumers looking to purchase a vehicle should not only focus on the performance of the new car but also pay attention to warranty terms and battery replacement policies.

Battery swapping may be the solution

In the face of issues such as charging efficiency and battery repair costs, the industry has long proposed the battery swapping model.

In simpler terms, electric vehicles do not need to be charged but instead can directly meet their range requirements by swapping batteries, separating the vehicle and battery for energy replenishment, similar to the once-removable battery phones.

Automotive companies use centralized charging stations to store, charge, and distribute large numbers of batteries, essentially tapping into the full lifecycle value of power batteries and redistributing benefits between enterprises and consumers.

For enterprises, this facilitates centralized management, inspection, and maintenance of batteries, ensuring battery performance and safety and extending battery life. For users, the "vehicle-battery separation" model derived from the battery swapping model reduces vehicle purchase costs.

In addition, other advantages of the battery swapping model are evident. Firstly, battery swapping is fast, with the entire process taking only 3-5 minutes, greatly improving travel convenience. Secondly, it does not require parking spaces, occupies a small area, and solves the problem of charging difficulties. Finally, it helps balance grid load and reduce peak grid pressure by "charging during idle times and swapping during busy times," thereby improving grid efficiency.

Nio's BaaS model primarily adopts battery swapping services. As of August 2024, Nio announced that its battery swapping model had surpassed 50 million swaps, with an average of 79,000 swaps per day, meaning a Nio vehicle leaves a swap station fully charged every 1.1 seconds on average. Nio also stated that nearly 60% of its owners' battery replenishment comes from swapping.

Nio's battery swap station technology continues to evolve, with the fourth-generation swap station further reducing swap times to as little as 2 minutes and 24 seconds.

However, the battery swapping model also has its disadvantages, with high upfront and ongoing operational costs for swap stations. The biggest issue is the lack of a unified battery swapping standard. Currently, swap stations are very scarce, covering only major cities and highways with high traffic volumes.

At the same time, we can see that various constraints are gradually weakening.

One of the essential prerequisites for battery standardization is the design limit threshold of battery cells. BYD has set the standard size of its blade batteries at 960*13.5(14)*90(102)mm, changing battery capacity by increasing or decreasing the number of cells in series and unifying battery materials to lithium iron phosphate to achieve material standardization. SAIC Motor's "Magic Cube" battery fixes the length and width at 1690mm and 1300mm, respectively, changing battery capacity by altering the height and series design and using different material systems to achieve capacity grading.

Swap stations are also evolving to be compatible with multiple battery types and vehicle models. Taking Nio's fourth-generation swap station as an example, significant progress has been made in compatibility. The fourth-generation swap station is equipped with 23 battery slots, which not only improves swap efficiency but also means it can support more battery packs of different specifications. It also supports 400V and 900V electrical platforms, making it compatible with models on different voltage platforms.

Since the State Council issued the "Development Plan for Energy-Saving and New Energy Vehicle Industry (2012-2020)" in 2012, proposing to explore new energy vehicle energy supply models, including the battery swapping model, the government has consistently provided policy support for the battery swapping model over the years.

On October 23, the Ministry of Industry and Information Technology stated that it was studying and formulating guidance on the new energy vehicle battery swapping model, which is a significant boost for companies promoting the battery swapping model, such as Nio.

At present, new energy battery replacements are still individual cases. Based on the year 2014 being considered the first year of new energy vehicles in China, after an 8-year warranty period and following the rule of a "5-year lag in the after-sales market," the peak period for the relatively concentrated maintenance of new energy vehicles will arrive in the next 3-5 years.

In the future, the advantages of the battery swapping model may become even more pronounced.