Dual Leaders Emerge in Battery Swapping: NIO Leads in Network, CATL Bets Big on Infrastructure

TradingKey - As a pioneer of the battery-swapping model in China, NIO has built over 3,000 swap stations nationwide, with users completing more than 30 million battery swaps cumulatively. Its innovative “vehicle-battery separation” and “battery-as-a-service” leasing model have fundamentally reshaped the premium EV ownership experience, securing its dominant position in the passenger car battery-swapping market.

However, the future of the swapping ecosystem is now being challenged by a player with far broader industrial ambitions — CATL (Contemporary Amperex Technology Co. Limited). The global leader in power batteries is transforming from a technology supplier into a large-scale infrastructure operator. CATL has announced plans to build 1,000 new passenger car swap stations in China in 2024, aiming to reach approximately 10,000 stations by 2028, capable of serving one million vehicles per day. Simultaneously, the company is rapidly expanding its battery-swapping network for electric heavy-duty trucks, partnering with Sinopec, CAR Group, and CMB Financial Leasing to scale the deployment of swapping-enabled trucks along key freight corridors.

Unlike NIO’s closed, brand-locked model of self-built and self-operated stations, CATL is pushing a standardized solution — the “Choco Block” battery swap module — designed to be “removable, swappable, and upgradable.” The goal is to create an open, public swapping network accessible to all automakers. At the core of this strategy is standardization: by reducing R&D costs for automakers and enhancing interoperability, CATL aims to build a public energy refueling system as ubiquitous as gas stations.

This dual-track evolution is now taking shape. According to Duo Fu, analyst at Rystad Energy, battery swapping can effectively leverage electricity price differentials between peak and off-peak hours, offering better economics than ultra-fast charging, which places heavy strain on the grid. Fast charging and swapping can thus complement each other. NIO, with its first-mover advantage and loyal user ecosystem, has built a strong moat in the premium passenger segment. CATL, leveraging its capital strength, battery expertise, and supply chain integration, is driving the systemic scale-up of swapping infrastructure.

Yuqian Ding, analyst at HSBC, believes CATL’s entry will elevate battery swapping from a carmaker-led service to a national energy infrastructure — positioning the company as the “new owner of the gas station.” While automakers like Xpeng have shifted focus to ultra-fast charging due to technical and cost considerations, the total cost of ownership advantage of swapping has already been proven in high-utilization segments such as heavy trucks, taxis, and ride-hailing fleets. Christopher Doleman, analyst at U.S.-based think tank IEEFA, notes that battery swapping is emerging as a key pathway to replace diesel-powered heavy trucks.

With growing support from central and local governments — including subsidies and national infrastructure planning — battery swapping is transitioning from a niche solution to a mass-deployed reality, marking a significant step forward in China’s electric vehicle transformation.