2 huge EV companies are teaming up to make 'automated battery swapping stations' real

Chinese electric vehicle (EV) manufacturers Nio and Geely are collaborating to introduce automated battery swap stations for their electric vehicles. The battery swap system can replace an entire battery pack in approximately three minutes, compared to traditional charging stations which can take up to an hour or more. Geely Holding Group, which owns several car brands including Geely Auto Group, Zeekr Group, Volvo, and Lotus Cars, has invested 30% of its stake in Nio Power, an EV battery swap business.

Unlike conventional EV charging stations, the battery swap stations do not require customers to plug in or wait, as they replace the entire battery pack. Currently, the battery swap stations are compatible only with Nio's electric vehicles. To use the system, owners lease the battery technology and pay monthly fees, effectively never owning the battery pack.

The Geely deal, pending regulatory approval, involves Nio trading part of its charging business for a stake in Geely's rival battery swapping technology business. This partnership comes nearly five years after Nio announced its plan to open its battery swap network to other manufacturers. Nio Power reported surpassing 100 million battery swaps since launching its service, with over 3,790 swap stations in operation, primarily in China but also in parts of Europe.

The Geely investment is expected to accelerate the rollout of battery swap solutions for Geely's large commercial vehicle fleet in China, which is the larger and more profitable market for battery swap technology. The collaboration might also result in the development of unified battery swap technologies and standards, potentially increasing the availability of compatible models for Geely's global market expansion.