Battery Swapping as the Key to Breakthrough? Automakers Target EV Battery Degradation and Resale Value Challenges

Rapid depreciation of new energy vehicles due to battery degradation has drawn industry-wide concern. Electric vehicles (EVs) older than six years are commonly rejected by used-car dealers, as their reduced driving range and high battery replacement costs—ranging from RMB 60,000 to 100,000, far exceeding the vehicles’ resale value—make them unattractive investments. One owner reported that an EV purchased for RMB 250,000 seven years ago now delivers less than 200 kilometers of range, significantly diminishing the driving experience. NIO Chairman William Li noted that vehicle and battery lifespans are inherently mismatched, and that battery-swapping models—through separation of the vehicle and battery—can maximize asset value. Chery Chairman Yin Tongyue emphasized the need to strike a balance between convenient energy replenishment and battery safety and longevity. GAC Group Vice Chairman Feng Xingya called for improved policies supporting vehicle-battery separation, highlighting that battery swapping offers advantages such as rapid refueling, high land-use efficiency, and optimized battery utilization—making it a critical pathway to accelerate EV adoption and ensure sustainable industry growth.