CIOReview | | 9 AUGUST 2022The NIO Power Swap Station 2.0 is the world's first mass-produced battery swap station that allows the vehicle to maneuver into the station automaticallyAside from charging stations or at-home chargers, there is another option for electric vehicles that manufacturers should look at, one that has been working well in countries like China. This option is battery swapping. Last year, NIO unveiled the NIO Power network development plan 2025, including the battery swap station deployment. NIO will have over 4,000 NIO battery swap stations worldwide, with around 1,000 outside of China, by the end of 2025. NIO drivers can drive to a station and swap out their low battery for a fresh, fully charged one in less than five minutes at an NIO Power Swap Station and continue with their journey. In 2020, NIO launched its innovative Battery as a Service (BaaS) solution. A flexible purchase plan for NIO EV owners, BaaS, is a quick and easy way to swap out or upgrade the vehicle's battery as an alternative to charging. In addition, users can subscribe to battery packs of various capacities according to their driving needs. The BaaS function can also help with E.V. penetration challenges, including battery degradation, battery upgradeability, and potential lower resale value. By introducing the convenience of swapping stations, NIO discovered that the battery service also reduced the price of each electric vehicle because the battery service is decoupled from the sale of the car. In addition, users have more options to choose from for different battery sizes at these Power Swap stations, so they can upgrade or downgrade their subscriptions as their driving needs change.The advances in battery technology, which can allow E.V.s to travel hundreds of miles between charges, doesn't reduce "range anxiety," which is described as a driver's fear that a vehicle has insufficient energy storage (fuel and/or electric) to cover the road distance needed to reach their destination. However, consumers want their drives to be seamless and as predictable as possible, and knowing that a charging station is available can ease their anxiety. A recent study from J.D. Power (2021 Electric Vehicle Experience (EVX) Ownership Study, Jan. 2022) has shown that driving range and the lack of charging options are the main reasons consumers don't consider E.V.s when buying a new car. Still, as the number of charging stations in an area increases, more consumers are willing to go electric.According to the Deloitte 2022 Global Automotive Consumer Study (January 2022), the number of miles to ease the average American buyer's range anxiety is 518 miles between charges. German drivers gave an average answer of 383 miles. Drivers in China would buy-in at just 258 miles.The NIO Power Swap Station 2.0 is the world's first mass-produced battery swap station that allows the vehicle to maneuver into the station automatically. Each station has 239 sensors and four cloud computing systems to maximize visual recognition technologies, allowing users to complete a self-service battery swap with only one click of their controls while remaining in their cars.The second generation of NIO Power Swap Station can now complete up to 312 battery swaps per day.User feedback has indicated that the NIO battery swapping service was one of the primary reasons they bought an NIO vehicle. Many NIO users, especially those who live in apartment buildings, cannot charge their batteries at home and rely on public charging stations. The convenience and simplicity of a battery swapping service can provide a powerful incentive for E.V. buyers.
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