In terms of environmental challenges, the automotive sector has always been under the radar. Electric vehicles were introduced as a clean energy project since they emit minimal or no emissions, and they have progressed to become an important component of OEM business strategies. In this blog, we will explore the benefits of battery swapping business model.
To prepare for the predicted EV growth in the future, automakers are forming dedicated EV business groups. The jump in EV demand, on the other hand, will require a large number of EV charging infrastructure.
India is anticipated to push towards electrification extensively, particularly in the automotive and transportation sectors.
Strict emission regulations, generous incentives and subsidies for consumers and manufacturers, a high level of localization, concrete safety standards, and established technology roadmaps are just a few of the key steps that the government has taken or will take in the coming years to ensure the success of electric vehicles.
Domestic OEMs like Tata Motors and Mahindra & Mahindra, as well as international OEMs like Hyundai and MG, have already introduced their flagship EVs to the market. They’ve set high sales goals and are anticipated to introduce new innovative electric vehicles (from city suited to long-range and powerful).
With many new companies entering this space, charging infrastructure, which is one of the primary elements driving EV adoption, is also gaining up speed. It has enabled enterprises to present themselves as manufacturers, operators, or payment gateways, opening up new business models.
Charging of the batteries of EVs is one of the biggest pain points of EV makers. In this blog, we will explore battery swapping for EV’s.
Welcome to the world of battery switching.
In 2020, the EV market of India was valued to be around $5.47 Billion. In the EV market, EV charging is considered one of the biggest problems. Battery swapping is considered the solution for India’s electric vehicle sector.
What is Battery Swapping?
Battery swapping is a technique for recharging an electric vehicle’s battery by replacing an exhausted battery with a fully charged one. It is thought to be a more viable solution than installing charging stations. A station with battery slots can charge batteries and keep them ready to be picked up in a battery-swapping environment.
How does the Battery Swapping model work?
Any rider or driver whose electric vehicle has run out of energy can use a medium such as a mobile application to locate one of these battery-swapping stations and get there. Once at the station, the rider or driver must remove the depleted battery and replace it with a fully charged battery from one of the swapping station’s battery slots.
Why Battery Swapping is so important?
According to data from VAHAN, the National Vehicle Database, India now has just 934 public charging stations constructed under the FAME II (Faster Adoption and Manufacturing of Hybrid and Electric Vehicles) scheme, while the number of registered EVs is 7,59,182. The unreliability of the charging infrastructure has been one of the main roadblocks in the adoption of electric vehicles. The proponents argue that because the battery-swapping stations may be placed and utilized by several EV users at the same time, they can supplement charging stations in meeting the EV industry’s energy needs.
Economical Benefits for EV makers.
Battery-swapping stations can also assist EV manufacturers in lowering car costs, as batteries account for 40% of the overall cost of EV’s.
Bounce, for example, just debuted India’s first electric scooter with interchangeable batteries that can be swapped at any of its battery-swapping stations. There have been reports that the battery switch will take less than a minute, but real-world performance has yet to be determined. While battery swaps have the potential to reduce charging times, the widespread availability of battery switching stations is still a long way off.
Battery Swapping v/s Battery Charging
If deployed successfully and efficiently, battery-swapping technology appears to have a solution to the industry’s biggest constraints. A battery-swapping facility might lower EV drivers concerns about long recharging times. The range anxiety issue would be addressed as well if the exchanging stations were strategically placed.
Furthermore, a battery-swapping station eliminates the problem of setting up an independent charging station, which many EV users confront if they live in a residential complex where this is not possible.
Challenges to the growth of Battery Swapping Infrastructure
One of the most significant challenges in applying this technology is a lack of uniformity in terms of battery design and compatibility across the board.
Because the sector is still in its infancy in the country, electric vehicle manufacturers are constructing infrastructure and scaling up technologies in silos, resulting in a lack of standards. Automakers will have to collaborate to develop standardized battery packs to make these battery-swapping facilities widely available to users riding/driving vehicles of all makes.
How BatterySmart is helping E-Rickshaw owners revenue with the Battery swapping method
Battery Smart provides lithium-ion battery solution to the e-rickshaws. With the help of Lithium-ion batteries in the battery swapping model, e-rickshaw owners are now able to earn more than before. Let’s understand how it was possible
In India, there are about two million electric rickshaws on the roads. One thing these have in common is that they’ve all run on lead-acid batteries thus far. These batteries are similar to those found in home inverter systems.
In a vehicle that weighs between 100 and 125 kg, a set of four batteries is deployed. The range of these batteries varies between 50 and 90 kilometers. These batteries normally last six to nine months. Another feature of these batteries is that they might take up to 10 hours to fully charge.
The limitations of lead-acid batteries have a significant impact on an e-rickshaw driver’s profits. This places a technical limit on how much a driver can earn in a single day. The daily range of a e-rickshaw is limited not by the availability of business or the intent of the vehicle owner, but by the capacity of the batteries.
To get around some of these restrictions, drivers would sometimes buy two sets of batteries. They would replace the first as needed and charge it.
Fortunately, Battery Swapping has emerged as a highly profitable option for drivers who have been unable to maximize the use of their e-rickshaw and time. Companies that specialize in battery swapping operate with modern lightweight Li-ion batteries that weigh less than 20 kg and can be readily lifted and installed in vehicles. In comparison to traditional batteries, which take 10 hours to fully charge, Li-ion batteries only need two to three hours.
When e-rickshaw reaches the end of the range, swapping services ensure that a new set of charged batteries is delivered instantly, effectively topping them up for another 70 to 90 kilometers in less than two minutes.
Battery swapping companies also offer these batteries as a service or on a subscription basis. In other words, the e-rickshaw driver does not have to pay for battery replacement regularly.
For e-rickshaw drivers, battery changing has unlocked three different advantages.
- They now have nearly unlimited range because they can simply replace out their drained batteries and restore range.
- Battery changing has removed the bother of battery ownership and, as a result, any concerns about battery longevity have been addressed.
- Drivers are no longer need to visit a base point (Home) every day to charge their vehicles.
As a result, they are free to drive automobiles wherever they like as long as they can find a swap station in the area. This gives them the ability to travel longer distances without being tied to a fixed location.
Drivers benefit from additional distance and flexibility as a result of the foregoing advantages. As a result of switching to battery swapping, drivers have nearly doubled their gross profits. A typical battery swapper travels 100-150 kilometers per day, about twice as far as he could on lead-acid batteries.
Furthermore, such freedom allows drivers to accept longer-distance trips without experiencing range anxiety, resulting in better hourly earnings. Drivers pay the same amount for charging and owning lithium-ion batteries as they did for lead-acid batteries. The marginal higher expenditures do not pinch a vehicle owner as drivers make more trips and earn more money.
At Inverted Energy we manufacture Lithium batteries across various range.
If you want to start your business in lithium batteries industry then contact us.