Understanding the Pros and Cons of Fast Charging and Battery Swapping for Electric Vehicles

Don’t Be Misled: Fast Charging and Battery Swapping Each Have Their Pros and Cons

Author: Yin Lu
Date: May 24, 2025

This article contains 2,666 words and takes approximately 4 minutes to read.

Battery swapping and fast charging both come with their respective advantages and disadvantages; they are not mutually exclusive alternatives. Together, home charging, fast charging, and battery swapping form a comprehensive energy replenishment system, each playing an essential role.

As electric vehicles (EVs) become increasingly widespread, the question of how to recharge them is frequently encountered by vehicle owners. They typically have three options: slow charging at home, fast charging at public charging stations, or swapping batteries at designated stations. Recently, social media has been buzzing with claims like “battery swapping is dead” and “fast charging reigns supreme.”

On March 17, BYD hosted a technology conference where it unveiled its latest charging technologies, including a kilovolt high-voltage platform, a 30,000 RPM motor, and “megawatt flash charging.” On the same day, CATL signed a strategic cooperation agreement with NIO to establish the world’s largest battery swapping network and promote the unification of industry standards.

With industry leaders making significant announcements on the same day, the debate over the superiority of battery swapping versus fast charging reached new heights. In reality, this debate is akin to the ongoing discussion about whether pure electric or hybrid vehicles represent the future; such binary thinking stems from a limited understanding of industrial dynamics.

The core contradiction in energy replenishment technology lies in the balance between replenishment efficiency, cost, and battery lifespan, which cannot all be maximized simultaneously. Home charging, fast charging, and battery swapping each require compromises within this “impossible triangle.” Just as one cannot achieve the ideal balance of performance, weight, and cost in smartphones and laptops, pursuing ultra-fast 5-minute charging inevitably comes at the cost of battery lifespan. Conversely, if one aims to extend battery life, it necessitates accepting the high costs associated with battery swapping or the inefficiencies of home charging.

Different companies are investing in diverse energy replenishment methods based on their strengths, making rational choices without any hierarchy of superiority. CATL’s focus on battery swapping primarily aims at establishing “standards.” Currently, over 120 battery specifications circulate in the Chinese market. CATL’s second-generation battery swapping solution employs standardized batteries of types 20# and 25#, catering to over 80% of the current new energy vehicle models.

This standardization not only helps address the fragmentation of battery models but also allows for centralized management that can enhance battery cycle life by at least 1,000 times, effectively doubling its lifespan. Additionally, the economies of scale and ease of recycling brought by standardization promise substantial long-term benefits.

In comparison to home charging and fast charging, batteries in battery swapping models possess asset attributes since they are owned by battery companies. Wuhan WeEnergy Battery Asset Co., which manages the battery assets of NIO’s battery swapping stations, issued its first green battery asset-backed notes (ABN) in April 2022, raising 400 million yuan. In 2024, it issued two more ABNs, raising 400 million and 600 million yuan respectively, with the interest rates for the three issues being 3.12%, 2.37%, and 2.27%. Besides low-cost financing, NIO has been keen on spinning off its charging and swapping business. In June 2024, NIO Energy secured a 1.5 billion yuan strategic investment from Wuhan Guangchuang Fund, and NIO China received an investment of 3.3 billion yuan from Hefei Jianheng and Anhui Gaoxin Investment, explicitly stating that the funds would be used for expanding the battery swapping business.

In the battery swapping cooperation agreement between NIO and CATL in March 2025, CATL also indicated that it would invest up to 2.5 billion yuan in NIO Energy. At the China Electric Vehicle 100 People’s Congress Forum on March 29, 2025, CATL’s Chief Technology Officer, Gao Huan, stated that the ideal sales model for future new energy vehicles should be battery separation, with batteries managed as separate assets by a battery bank. Users would employ flexible methods such as leasing and subscription to use the batteries, relieving them of the risks and costs associated with battery maintenance, replacement, and insurance.

CATL also plans to collaborate with automakers and power grids to leverage the distributed energy storage characteristics of battery swapping stations, participate in green electricity absorption, and respond to the grid’s peak shaving and frequency modulation needs. This would allow each charge and discharge cycle of the batteries to generate value, transforming batteries from mere consumables into assets that yield stable returns.

Both CATL and NIO are optimistic about battery swapping because they believe in its long-term value. As a leader in the battery industry, CATL stands to gain significantly from a thorough development of battery value, especially if the asset attributes of batteries are widely recognized in the market. NIO, being the most committed company to battery swapping in China, sees it as a critical competitive advantage. With a shift from entirely self-built battery swapping stations to partnerships for construction, along with prolonged battery lifespans and increased energy storage revenues leading to reduced costs, the financial burden of NIO’s charging and swapping network is expected to alleviate gradually. The increasing density of the network will also reveal more pronounced benefits.

BYD has consistently held a significant advantage in charging. For instance, its unique boost charging technology allows BYD vehicles to achieve faster charging speeds under identical charging conditions compared to other models. Dual-gun fast charging can enable quicker charging using lower-power fast charging stations. The recently unveiled megawatt flash charging technology is based on BYD’s self-developed next-generation blade batteries, which can withstand high voltages of 1500V using silicon carbide power chips.

With its vertically integrated supply chain, BYD maximizes charging efficiency while ensuring optimal costs. For example, its 480KW fast charging stations cost only 60% of similar products. The latest megawatt flash charging stations require only a 315KVA capacity transformer due to the use of BYD’s own 225KWh energy storage cabinet as a buffer, whereas a conventional station of the same scale would need a 1600KVA transformer, cutting the transformer costs by more than half.

Regarding battery standardization, although BYD’s battery packs are not standardized, the cells are all blade batteries with limited specifications. Additionally, BYD’s substantial sales volume, combined with its energy storage business, enhances the feasibility of a self-contained battery system with internal recycling. While this makes it challenging to develop the asset attributes of battery products, the absence of multi-client adaptation costs provides a clear cost advantage.

However, the impact of fast charging, especially ultra-fast charging, on battery lifespan should not be overlooked. Under current technological conditions, regardless of how battery manufacturers and automakers optimize charging management systems or improve the charging characteristics of batteries, faster charging speeds inevitably result in shorter battery cycle lifespans—a principle rooted in electrochemistry. In corporate promotions, whether it’s claiming a full charge in 12 minutes (5C) or 6 minutes (10C), they focus solely on charging rates without addressing battery longevity. After a few years, batteries begin to limit maximum charging power and capacity. Data from the 12315 platform indicates that in 2024, there were 156,000 complaints regarding new energy vehicles, with 22.4% related to issues like “locked battery” and “power reduction.”

Neither battery swapping nor fast charging holds an absolute advantage as a replenishment method. Both Zeng Yuqun of CATL and Li Bin of NIO have publicly stated that the best charging method is home charging. While home charging has its biggest drawback in terms of replenishment efficiency, it occurs while the vehicle is stationary, resulting in zero time costs for users; thus, the efficiency shortfall is not an issue. Moreover, home charging is inexpensive and has almost no impact on battery lifespan.

In the commercial world, there are no universally correct technologies—only the most suitable solutions for different scenarios. Zeng Yuqun stated during the launch of CATL’s second-generation battery swapping station that the future energy replenishment network will be divided among home charging, public charging stations, and battery swapping stations. Home charging is the optimal solution that should be universally adopted, while battery swapping and fast charging cater to different replenishment needs.

NIO is regarded as a pioneer in battery swapping, yet it has already established over 27,000 self-built charging stations, with over 80% of the charging energy supplied to non-NIO models. In December 2023, NIO introduced a 640KW fully liquid-cooled charging station, which was the highest charging power station at that time. NIO’s charging mobile application has been rated as one of the best charging apps by consumers, placing NIO among the top tier in charging solutions.

While BYD is significantly enhancing its charging power, it is also accumulating technologies and patents in battery swapping for rail vehicles and passenger vehicles. China’s vast new energy market can accommodate multiple technological routes. Shifting from a “this or that” mentality to one of “coexistence and mutual prosperity” is a hallmark of industry maturity. Providing consumers with choices is always better than making choices for them.