CATL is the world’s largest electric vehicle battery manufacturer and supplier to the likes of Tesla and Ford
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CATL, the world’s largest electric vehicle battery maker, is evaluating whether to expand its battery swapping business into international markets, a senior executive told CNBC.
CATL, or Contemporary Amperex Technology Co. Limited, a supplier to companies such as Tesla and Ford
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In January, the Chinese battery maker launched its battery swap business called EVOGO in China in 10 cities. The aim is to eliminate the need to stop electric cars at recharging stations. Instead, drivers can rent battery packs from CATL and keep them in the car when their other batteries run out. It takes a few minutes.
Neo, an electric car start-up in China, also has a competing battery swapping program. Neo co-founder Qin Lihong told Reuters this week the company plans to build 1,000 battery swapping stations outside China by 2025, the majority in Europe.
Li Xiaoning, CATL’s executive president of overseas commercial applications, told CNBC in an interview Thursday that the company is also evaluating the expansion of its battery swapping products in Europe.
“I would say it will start in China this year. We will examine Evogo’s overseas footprint step by step,” Lee said.
“We are starting to evaluate possible collaborations with many partners. We have to understand the details in practice,” he added. “We consider many factors. Product technology is one thing, business case is another, regulation, local regulations and other things we need to think about as well.”
If CATL expands its business overseas, it can help foreign automakers provide battery swapping services to customers without building their own expensive infrastructure.
CATL is facing challenges with rising costs of raw materials like lithium, which go into its batteries.
But the company still managed to more than double profits in the second quarter as demand for electric cars continued.