“Green mountains and clear waters are as valuable as mountains of gold and silver.” For industries like coal yards, mining plants, and urban construction debris transportation, environmental concerns are among the biggest headaches. New energy vehicles (NEVs) have become an increasingly attractive solution to address these “environmental quotas” while improving economic efficiency.
Charging or Battery Swapping? The Future of Pure Electric Heavy Trucks
Multiple Favorable Policies and Growing Market Demand
In recent years, the government has ramped up its policies to encourage the development of the new energy medium- and heavy-duty truck market. These include exploring zero-emission freight truck pilot programs, implementing clean transportation zones, and pushing for cleaner transportation regions in key sectors like steel, coal power, and ports. High-energy-consuming enterprises have been aggressively complying with these policies by purchasing new energy trucks. Additionally, urban infrastructure projects are placing higher environmental demands on transport vehicles.
As a result, the demand for new energy vehicles has surged. Since 2020, China’s new energy medium- and heavy-duty truck market has been on the rise, with 2023 achieving 37,745 units, a 34.4% increase from the previous year, and a market penetration rate of 5.6%.
Charging or Battery Swapping? What’s the Best Energy Supply Solution?
In the new energy truck market, pure electric technology holds the largest market share. In 2023, 32,102 pure electric trucks were sold, accounting for 85% of the total market. However, energy replenishment methods are divided into two categories: charging and battery swapping. So, which method will dominate in the future?
Looking at sales data for 2023, the total sales of pure electric medium- and heavy-duty trucks amounted to 32,102 units. Among these, 17,410 were charging trucks (54.2%), while 14,692 were battery-swapping trucks (45.8%). From the data, we can see that both energy replenishment methods are nearly equal in share.
Key Consideration: Range Limitation Remains the Primary Challenge
The biggest issue for pure electric trucks today is the limitation of driving range. As a result, pure electric heavy trucks are primarily used in closed environments and short-distance, high-frequency transport. Both charging and battery swapping come with unique advantages and disadvantages.
Battery Swapping: Fast Recharging, but High Initial Investment
The biggest advantage of battery swapping is its speed: a swap takes only 3-5 minutes, similar to refueling a traditional diesel truck. Additionally, battery swapping allows for “separation of vehicle and battery,” meaning users can rent batteries to reduce the upfront cost of the vehicle. This makes it comparable to the cost of traditional fuel trucks.
Battery swapping stations also offer better battery management, leading to longer battery lifespans and higher safety. Moreover, energy can be charged during off-peak hours to reduce costs, and if there is enough battery capacity, energy can be used to balance the grid during peak times.
Battery swapping stations can even adjust energy levels based on actual needs. For instance, if a vehicle typically drives 100 kilometers, a 50% battery charge may be enough for a round trip, with an additional 20% reserve. By ensuring the battery is only charged to around 70%, this method increases battery swapping frequency and operational efficiency.
However, battery swapping comes with its own set of challenges:
- High Station Setup Costs: Establishing a battery swapping station is expensive. Site approval, connecting to the power grid, and other administrative tasks are complex. The total investment for a standard station (7+1) can exceed 5 million RMB, including the costs for charging equipment, distribution, and space use, which can put significant financial strain on fleet owners or enterprises looking to build their own stations.
- Non-Standardization of Battery Specifications: The lack of universal standards for batteries means that most swapping stations are limited to specific vehicle models. This can create difficulties for fleets that use various models with different battery specifications, limiting scalability.
- Complex Ecosystem: The battery swapping ecosystem is more intricate compared to traditional fuel trucks. It involves multiple parties such as vehicle manufacturers, battery suppliers, energy operators, and end-users, making the process more complicated to manage.
- Fast Obsolescence of Batteries: Batteries evolve quickly, requiring frequent updates to the technology used in swapping stations. This presents a potential risk over the vehicle’s operational lifecycle.
Moreover, while swapping provides a fast recharge, the battery needs to be recharged at the station itself, which means fleet managers must efficiently manage the logistics to minimize wait times, especially in high-frequency, short-distance transportation scenarios where time is money.
For smaller fleets, the option of using third-party swapping stations may seem appealing, but investment in these stations requires a certain scale, which can be challenging. Larger fleets can consider building their own stations, but this comes with significant capital costs and longer return on investment periods.
Charging: Lower Costs, but Slower Recharging is a Disadvantage
Charging, compared to battery swapping, has a longer development time and is more mature in terms of technology. Charging is also more inclusive, meaning that different vehicles within the same fleet can use the same charging station regardless of the model.
The infrastructure for charging stations has already been established on a large scale. Building a charging station is much cheaper than a battery swapping station, costing around 60,000-70,000 RMB per station. It’s also easier to set up, with lower ongoing maintenance costs compared to battery swapping stations.
Charging technology is continually advancing, and with the application of fast-charging and ultra-fast-charging technologies, charging efficiency has significantly improved, reducing the charging time.
For example, a joint project by Shaanxi Automobile Group and Giant Bay Tech developed an ultra-fast charging commercial vehicle battery with a capacity of 256 kWh, capable of charging from 10% to 80% in just 15 minutes.
However, even with these advances, charging still takes longer compared to refueling or swapping batteries. This remains a key disadvantage for many high-frequency, short-distance transportation customers who prioritize efficiency.
Additionally, charging trucks have higher initial purchase costs than battery-swapping trucks (due to the lack of battery leasing options), and the batteries themselves degrade over time, affecting vehicle performance and range. Eventually, replacing the battery comes with high costs.
Conclusion: Charging or Battery Swapping?
While battery swapping seems to be a promising future technology, its high costs and slow return on investment leave many uncertainties. Both charging and battery swapping currently suit only certain short-distance transport scenarios.
For B2B fleets or individual truck owners, it’s crucial to assess your specific operational needs and transportation scenarios to choose the most suitable energy replenishment method for maximizing efficiency and profitability.
