The Korea International Trade Association, KITA has called for the adoption of battery swapping as a solution that could boost South Korea’s electric vehicle transition. The Association made this known in an exclusive report, where it itemized some benefits of battery swapping in the growth of the electric vehicle industry.
Battery and Electric Vehicle Industry
The market for switching out the batteries in electric vehicles is anticipated to expand quickly over the next few years, with China taking the lead. According to estimates, the Chinese market for battery switching would increase from 840 billion won in 2018 to approximately 18 trillion won ($13 billion) in 2025.
By 2025, 1.92 million EVs with battery-swapping technology are anticipated, representing an annual growth rate of 86%. In China, the percentage of passenger vehicles with the battery-swapping solution is anticipated to be around 17%, while the percentage of commercial vehicles with the same solution is anticipated to be 33%.
According to a statement from the Chinese government, 30,000 battery charging stations will exist by 2025, up from 1,406 as of last year, to keep up with the growing number of electric vehicles (EVs) equipped with battery-swapping technologies.
According to the report, the market’s state-led initiative has benefited those who are interested. According to the research, Nio, China’s top EV manufacturer and operator of swap stations, is just one of several businesses that have profited from the state-led programs.
Benefits of Battery Swapping in the EV Industry
According to KITA, in particular, in China, battery swapping is hailed as a potential solution for EVs. Rather than having to charge the empty battery at a specific station, the system enables drivers to swap out a depleted battery with a fully charged one in only a few minutes.
South Korea might reap several benefits from expanding battery swapping. It might make it possible for the nation to effectively control its power grid and take the place of the current charging infrastructure. It might aid in lowering the industry’s concerns about battery safety and performance, such as battery fires, protracted charging periods, and frequent battery replacement.
The KITA report further added that South Korea might likewise quickly adopt battery swapping if the government chooses to test the solution first in the public sector, where it can move ahead with top-down standards and infrastructure investment.
However, KITA finally cautioned that because the market for battery swapping involves substantial expenditures from conglomerates, smaller companies might be left out. Consequently, it suggested that the government create a business model that small and medium-sized businesses, such as those engaged in manufacturing vehicle parts and providing other minor automotive services, might join.