Electric Vehicle Charging Revolution: Fast Charging vs. Battery Swapping Solutions

Electric Vehicle Charging Competition Heats Up: Is Fast Charging or Battery Swapping the Better Solution?

As the electric vehicle (EV) market continues to grow, the speed of charging has become a key focus for automakers. According to sources from BYD, the company is set to complete its first “megawatt fast charging station” in collaboration with Sinopec. The station is already built, and after the launch of the Han and Tang L models, BYD plans to deploy 500 megawatt fast charging stations nationwide, with a goal of establishing over 4,000 stations across the country. Moreover, BYD has announced that its megawatt fast charging system will be open to the entire industry and has received numerous partnership inquiries, intending to collaborate with major domestic charging operators.

BYD is not the only company investing in megawatt fast charging technology. Recently, companies such as Huawei and Zeekr have also announced their developments in this area. Meanwhile, competitors like NIO and CATL are rapidly investing in the battery swapping model. This raises the question: between fast charging and battery swapping, which solution will prevail?

Is Megawatt Fast Charging Technology Necessary?

The competition in the fast charging sector is intensifying. Following BYD, Zeekr has announced plans to unveil a single-gun peak power 1.2 megawatt liquid-cooled charging station in the second quarter of this year, marking the entry into the single-gun megawatt fast charging era. Recently, Huawei’s megawatt fast charging products are set to launch on April 22. According to Huawei’s executive, the maximum charging current of its megawatt-level product reaches 2400 amps, with a maximum power of 1.44 megawatts, allowing for approximately 20 kWh of charge per minute, thus completing charging within 15 minutes.

In terms of technical implementation, BYD’s megawatt fast charging technology requires extremely high voltage and current. For instance, the voltage must achieve 1000V for components including the vehicle’s battery, motor, power supply, and air conditioning, while the internal resistance of the battery must be minimized to allow for a charging current of 1000A. Shao Jie, Chief Technology Officer of the Intelligent Platform at SAIC General Motors Wuling, commented on the current state of fast charging technology, stating that the industry has reached levels of 4C, 5C, and 6C, and while new players are introducing megawatt fast charging technology, he believes that higher ‘C’ rates may not be necessary. He expressed concerns about the industry’s resource consumption for marginal time savings and the potential dangers of increased charging rates.

Charging rates are defined by the ‘C’ rate, where a higher number indicates faster charging. For example, 1C can fully charge a battery in one hour, while 2C can do so in 30 minutes, and 4C in 15 minutes. According to BYD, the Han L EV boasts a maximum production charging rate of 10C with a maximum charging power of 1000 kW (1 megawatt), enabling a charging speed of “2 kilometers in 1 second” and a range of 400 kilometers after just 5 minutes of charging.

Currently, the production charging power for new energy passenger vehicles generally falls between 480 kW and 600 kW, with production charging rates typically in the 4C to 6C range. For instance, Li Auto’s first pure electric SUV, the Li Xiang i8, comes equipped with a 5C fast-charging battery, supported by over 2,000 nationwide 5C fast charging stations. Xpeng has also announced its 5C fast charging AI battery, which, when used with 5S liquid-cooled fast charging piles, can achieve a charging speed of over 1 kilometer per second and reach 80% charge in 12 minutes.

However, Lu Wenliang, a distinguished researcher in the automotive industry at the Chinese Academy of Sciences, pointed out that BYD’s megawatt fast charging is designed with energy storage in mind to address the impact on the power grid. He noted that vehicles can utilize dual-gun charging, achieving a relatively fast charging speed even with standard fast charging stations. He believes that while the megawatt fast charging technology is significant for commercial vehicles, it is also beneficial for passenger vehicles, as BYD’s technology is already being mass-produced and sold, with a charging rate of 10C.

According to official reports, Huawei’s megawatt fast charging technology aims to accelerate the electrification of heavy-duty trucks, which currently face slower electrification primarily due to slow charging speeds and inadequate networks. To facilitate rapid charging of large capacity batteries, both megawatt fast charging technology and a comprehensive megawatt charging network are essential.

Comparing Construction Costs: Megawatt Fast Charging vs. Battery Swapping

While fast charging offers significant speed improvements, it is not the sole solution. Companies like NIO and CATL are also focusing on the battery swapping model. During its first quarter earnings call, CATL identified challenges with megawatt fast charging, noting that the establishment of such charging stations requires high-capacity infrastructure and energy storage solutions, leading to additional costs and extended construction periods, which may not be universally applicable.

Last month, CATL signed a strategic cooperation agreement with NIO, which includes a strategic investment of up to 2.5 billion RMB into NIO Energy, alongside a partnership for NIO’s third brand, Firefly, to integrate with CATL’s chocolate battery swapping platform. CATL claims that its battery swapping stations can complete a swap in just 100 seconds, while NIO’s fourth-generation swapping stations can achieve the fastest swap in 2 minutes and 24 seconds (144 seconds).

From the aforementioned swapping station speeds, they may surpass the 10C fast charging in speed. However, regarding construction costs, Lu Wenliang believes that the expenses for battery swapping stations are likely higher than those for fast charging stations equipped with energy storage cabinets. For example, NIO, a pioneer in the battery swapping market, has varying construction costs for its different generations of swapping stations: the first-generation station cost about 3 million RMB, the second-generation around 2 million RMB, and the third and fourth generations reduced to 1.5 million RMB. Despite the gradual decline in costs through iterations, the accumulated investment remains considerable.

As companies engage in the electric vehicle charging competition, the ultimate optimal solution remains to be seen. This will depend on various factors, including technology, deployment speed, and costs.