From the Bottom of the “Disdain Chain” to a Magnet for Industry Giants: How Did the Battery Swapping Sector Suddenly Turn Around?

A few years ago, battery swapping was one of the most controversial energy replenishment solutions in the industry. Many people criticized it for being asset-heavy, requiring huge investments, and struggling to achieve profitability. Numerous automakers chose to focus on fast-charging technology instead, while keeping a wait-and-see attitude toward battery swapping. However, the trend has changed in July this year. Li Auto was reportedly considering adapting its vehicle models to join CATL’s Choco-SEB battery swapping network, while Harmony Intelligent Mobility Alliance (HIMA) was also rumored to be planning to join the same ecosystem. In the same month, Xiaomi entered the battery swapping sector by investing through an affiliated company in Zhejiang Xinglixing New Energy Technology Co., Ltd., officially stepping into the market. Once regarded as a “bottomless money pit,” battery swapping is now returning to the spotlight at an unprecedented speed and becoming a major battleground once again.

1. The Tide Has Turned: Battery Swapping Is No Longer a One-Company Game

For a long time, battery swapping was almost synonymous with NIO’s brand identity. Since launching its first battery swap station in 2018, NIO has been committed to this path for nearly a decade. As of July 2026, NIO has built more than 3,700 battery swap stations across China, with around 20% of them already achieving profitability at the station level. In June 2026, NIO delivered 40,597 new vehicles, representing a year-on-year growth of 62.9%, and achieved profitability for two consecutive quarters. Battery swapping is gradually transforming from an early-stage differentiated service feature into essential infrastructure supporting the daily mobility needs of millions of users.

However, this new wave of enthusiasm for battery swapping has already moved beyond NIO alone. CATL is rapidly expanding its Choco-SEB battery swapping ecosystem, adding more than 200 new stations every month and targeting 3,000 stations by the end of the year. Multiple traditional automakers, including FAW, Changan, BAIC, Chery, and GAC, have jointly launched 10 new battery-swapping vehicle models. The Choco-SEB battery swap station recently deployed in Xining can even support 18 mainstream vehicle brands.

The bigger signal comes from players that once stood on the opposite side of the battery swapping debate. Li Auto has been deeply developing its 5C fast-charging network, while Harmony Intelligent Mobility Alliance (HIMA) has focused on 800V high-voltage fast charging. These two brands, which previously placed heavy bets on fast-charging solutions, are now seriously considering integration into battery swapping ecosystems. This is not blind trend-following, but rather the result of the industry proving through real-world data that battery swapping has become a mature and viable solution.

2. Are Battery Swapping Networks Still Burning Money After These Three Calculations?

The reason battery swapping has managed to rise from the bottom of the industry’s “disdain chain” and attract major players is not because of hype or speculation, but because of three clearly visible value propositions.

The first is energy replenishment efficiency. The fastest high-voltage supercharging solutions currently available on the market still require 20 to 30 minutes for a full charge, and users may also need to wait during peak hours. Battery swapping, by contrast, can be completed in just 3–5 minutes. CATL’s Choco-SEB battery swapping system can complete a full vehicle battery replacement in as little as 99 seconds. The user experience is now approaching that of refueling a traditional gasoline vehicle, creating a clear gap in efficiency.

The second is battery cost reduction. Under the battery-as-a-service (BaaS) model, users no longer need to bear the high upfront cost of a battery pack. Instead, battery usage fees are paid through monthly subscriptions. Future battery upgrades no longer require replacing the entire vehicle — users can simply switch to a new battery pack. Battery degradation and failures are managed centrally by battery swapping operators, making ownership easier and more affordable for consumers.

The third is battery lifespan optimization. Frequent fast charging can accelerate battery cell aging. Under the battery swapping model, batteries can be charged at a lower rate under controlled temperature conditions inside swap stations, while undergoing regular balancing and health checks. This can extend battery service life to more than 12 years, fundamentally addressing the problem of mismatched lifespans between vehicles and batteries.

Every battery swap also includes a battery health inspection. Faulty cells can be quickly identified and isolated, with the entire process already validated through hundreds of millions of real-world operations. For operators, centralized management of large-scale battery assets also creates opportunities in battery recycling and second-life applications, forming a sustainable long-term revenue model.

3. From Product Competition to Ecosystem Competition: The Battery Swapping Landscape Has Completely Changed

The biggest reason battery swapping was questioned in the past was simple: only one company was doing it. With a limited user base from a single brand, battery swap stations struggled to achieve high utilization rates, making it difficult to spread costs and achieve profitability. The core problem was not that the battery swapping model itself was flawed, but that the scale was insufficient.

CATL’s entry into the sector has addressed the most critical weakness — standardization. Its Choco-SEB battery swapping system uses standardized 42kWh No.20 swap batteries and 56kWh No.25 swap batteries, allowing different automakers and vehicle models to share the same battery standards. The service target has expanded from a single brand to the entire automotive industry. This marks the turning point where battery swapping has evolved from an exclusive service offered by individual automakers into a universal mobility infrastructure.

The biggest advantage brought by standardization is that it significantly lowers the barrier for automakers to enter the battery swapping ecosystem. Instead of investing huge amounts of capital to build an entire swapping network from scratch, automakers can directly connect to an established standardized system and provide battery swapping services to their customers. CATL takes responsibility for station construction, operation and maintenance, as well as full lifecycle battery management, while automakers can focus on improving vehicle products. With clear division of responsibilities, each side can capture value from its own area of expertise.

This also explains why Li Auto and Harmony Intelligent Mobility Alliance are seriously considering joining the ecosystem. For Li Auto, the energy replenishment challenge of its pure electric vehicle strategy has always been a key issue. Connecting to a battery swapping network would effectively complete an important missing piece of its electric vehicle ecosystem. For Harmony Intelligent Mobility Alliance, its intelligent cockpit and autonomous driving technologies are already highly competitive, but the energy infrastructure network remains a weakness. Battery swapping could fill this final gap. With policy support pushing the industry forward and major players actively entering the field, battery swapping is rapidly evolving from a “niche option” into an infrastructure solution being seriously considered by mainstream automakers. The essence of this competition has already shifted — from “whose products are better” to “whose ecosystem is more complete.”

Battery swapping has transformed from a heavily criticized, money-burning business model into a strategic battleground for major industry players — but this shift did not happen overnight. NIO spent nearly a decade proving the feasibility of the battery swapping model. CATL’s introduction of standardized battery swapping solutions opened the door for large-scale expansion, while the collective entry of fast-charging-focused brands marked a fundamental shift in the industry’s perception. With three major advantages — higher energy replenishment efficiency, lower battery ownership costs, and longer battery lifespan — battery swapping is no longer an exclusive strategy for a small number of automakers. As competition expands from individual products to broader ecosystems, the importance and strategic value of battery swapping in the new energy vehicle industry are already on a completely different level compared with just a few years ago.