China’s CATL, BAIC target 1 million cars with new battery swap network

[BEIJING] Contemporary Amperex Technology Co Ltd (CATL) and Beijing Automotive Group (BAIC) will develop a battery-swapping system, with the aim of servicing one million vehicles, as the battery giant looks to grow what is seen as a long-term revenue stream.

BAIC will bring compatible models in multiple brands into CATL’s Choco-Swap network, as well as open its dealership network to support the deployment of battery-swapping stations, the Chinese battery giant said on Thursday (Oct 22).

The companies will cooperate on vehicle and battery development, infrastructure construction, battery management and new business models, it said, without disclosing a timeline for the one-million-vehicle target.

BAIC’s total new-energy vehicle sales were around 390,000 in 2025.

The deal underscores CATL’s intensifying effort to make battery swapping a larger part of China’s electric-vehicle market, and diversify earnings beyond the one-time nature of selling a single battery pack to a carmaker.

Battery swapping is currently faster than recharging, but CATL’s efforts to build a network face hurdles including costly investments in stations and spare batteries, and reluctance from automakers that have to standardise their vehicle architecture to accommodate swapping.

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Competition is intensifying in China’s battery market as domestic car sales cool. CATL’s shares tumbled this week after it reported slower-than-expected quarterly profit growth.

The agreement with BAIC follows a separate partnership announced on Monday between CATL, its battery-swapping subsidiary, and Huawei Technologies’ automotive technology business. BLOOMBERG