Battery swapping paves the way for faster electrification

Reducing emissions from the transport sector is crucial for Sweden to reach its goal of net zero emissions by 2045. Although conventional EV charging is becoming faster, it can strain the electricity grid and require extensive infrastructure, potentially slowing down the transition. Battery swapping, where drivers exchange depleted batteries for fully charged ones at dedicated stations for 3-5 minutes, emerges as a promising solution to enhance efficiency and accessibility for electric vehicles.

The project, Power Swapping: Embedding the Battery Swapping Model in a Swedish Context, conducted between 2022 and 2025, examined how this technology could be adapted to Swedish conditions. By combining economic analysis, technical evaluations, and insights from international examples – particularly China – the project identified the key economic, social, and technical prerequisites for making battery swapping a viable part of Sweden's transport and energy systems.

“Battery swapping is not merely a technical solution; it also requires new business models and collaboration across the entire value chain, from battery production to battery re-use and recycling,” says Lei Huang, project leader and postdoctoral researcher at the Stockholm School of Economics.

Reduced load on the power grid

In China, battery swapping has been established as a complement to fast charging, especially for heavy-duty transport. After an initial push that was later abandoned in favour of fast charging, China resumed large-scale development of battery swapping in 2020 – focusing on unified guidelines and standardisation. This aims to drive different vehicles and brands to use more standardised batteries, increasing efficiency and profitability for swapping stations.

“At the time, fast-charging times for heavy-duty trucks in China often well over an hour created a significant operational bottleneck. Battery swapping reduces charging time, extends battery lifespan, and eases pressure on the grid,” explains Lei Huang.

In Sweden, however, the technology faces certain challenges. Swedish vehicle manufacturers are generally sceptical of standardised batteries, as it may limit product differentiation and shift profitability to battery producers. Standardisation also restricts design freedom, potentially hindering innovation.

“Swedish manufacturers see risks in batteries becoming a commodity. It’s a major contrast to China, where battery producers are driving this development,” says Lei Huang.

Battery swapping as part of the energy system

One of the most promising aspects of battery swapping is its potential to contribute to a more sustainable energy system. Swapping stations can act as distributed energy resources, using stored batteries to balance the grid. By charging batteries when there is a surplus of renewable energy – such as solar power during midday – and reducing charging during peak hours, the stations can relieve grid pressure and harness energy that might otherwise go to waste.

“Swapping stations can provide storage capacity and balancing power, making them a vital part of a smart and sustainable energy system,” says Lei Huang.

The project also shows that battery swapping can facilitate battery reuse and recycling. By collecting used batteries at the stations, their quality can be constantly assessed, and they can be reused or recycled efficiently, contributing to a circular economy.

Collaboration and incentives for success

To realise a widespread battery swapping infrastructure in Sweden, collaboration is needed between multiple stakeholders: station operators, battery management companies, and the government. The business model often relies on customers renting batteries rather than owning them, which requires both financially robust actors and technical specialists with expertise in battery chemistry and data analysis to ensure optimal use of batteries.

“We need players in different areas, for example, those who can manage large investments, developing predictive maintenance, modelling battery state-of-health, and assessing residual value,” says Lei Huang.

Commercial transport operators, such as bus and taxi companies, stand to benefit particularly from battery swapping. By placing swapping stations at depots, downtime can be minimised – a critical factor for these operations.

Next steps for battery swapping in Sweden

The project received crucial support from the Swedish Energy Agency, enabling an in-depth analysis of battery swapping in a Swedish context.

“Without funding from the Energy Agency, this project would not have been possible. It’s a forward-looking investment in Sweden’s electrification goals,” says Lei Huang.

The next phase involves gathering further data from China and South Korea, where battery swapping and battery production are rapidly evolving. By the end of the year, the team plans to present a final report and invite industry stakeholders to a meeting to discuss the findings.

“Our hope is that the study not only contributes scientific insights but also becomes a practical tool for industry and policymakers,” concludes Lei Huang.