CATL considers expanding the battery swap business to the international market

An executive of the world's largest electric vehicle battery manufacturer CATL said that the company is evaluating whether to expand the battery swap business to the European market. In January this year, CATL announced its entry into the power exchange industry and released the power exchange service brand EVOGO and a combined power exchange overall solution. It plans to launch the first power exchange service in 10 cities. The overall solution of combined power exchange of CATL is composed of three products: "power exchange block, quick exchange station, and App". In April this year, the Ningde EVOGO battery swap service was officially launched in Xiamen, which is also the first city where the service was launched.

NIO, which has been in the battery swap market, plans to build 1,000 battery swaps outside China by 2025, most of them in Europe, its co-founder Qin Lihong told Reuters this week.

The company is also evaluating expanding its battery swap products to Europe, Li Xiaoning, executive president of overseas commercial applications at CATL, said in an interview with CNBC on Thursday. "We're starting to evaluate potential collaborations with a number of partners. We need to understand the details in practice," he added. "There are many things we think about. Product technology is one thing, business case, regulation is another. , local rules, and other factors that we also need to consider.”

If CATL expands overseas, it could help foreign automakers offer battery swaps to customers without having to build the expensive infrastructure themselves.

CATL is facing various challenges, including rising costs of raw materials such as lithium, but still doubling its second-quarter profit as demand for electric vehicles continued to be strong.

According to Bloomberg, Matthias Zentgraf, European president of Chinese battery maker CATL, said in an interview that the company is considering opening a third factory in Europe and is currently in internal discussions, but no firm decision has been made. "If there is no demand, we will not build a third factory," Zentgraf said.

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