NITI Aayog on 21st April 2022, has notified the draft Battery Swapping Policy and has requested all the stakeholders are requested to submit their comments latest by 5th June 2022. The Policy aims to create a framework for greater interoperability while safeguarding the innovation potential for the EV (electric vehicles) battery ecosystem. Interoperability may be defined for the charging and discharging processes of EV batteries.
Battery swapping is an alternative which involves exchanging discharged batteries for charged ones. Battery Swapping de-links the vehicle and fuel (Battery in this case) and hence reduces the upfront cost of the vehicles. Battery swapping is popularly used for smaller vehicles such as 2 and 3 wheelers which have smaller batteries that are easier to swap compared to other automotive segments wherein the same can be implemented mechanically.
Battery swapping offers three key advantages relative to charging: it is time, space, and cost efficient, provided each swappable battery is actively used.
The key objectives of this policy are to:
- Promote swapping of batteries with Advanced Chemistry Cell (ACC) batteries to decouple battery costs from the upfront costs of purchasing EVs, thereby driving EV adoption.
- Offer flexibility to EV users by promoting the development of battery swapping as an alternative to charging facilities.
- Establish principles behind technical standards that would enable the interoperability of components within a battery swapping ecosystem, without hindering market-led innovation
- Leverage policy and regulatory levers to de-risk the battery swapping ecosystem, to unlock access to competitive financing.
- Encourage partnerships among battery providers and other relevant partners such insurance/financing, thereby encouraging the formation of ecosystems capable of delivering integrated services to end users.
- Promote better lifecycle management of batteries, including maximizing the use of batteries during their usable lifetime, and end of life battery recycling.
This Policy emphasizes enabling innovation in adoption of possible business models, and derisking the investment in required infrastructure to encourage private sector participation and attract affordable financing.
