BYD is advancing its rapid charging capabilities, while NIO partners with CATL to explore battery swapping, signaling a potential third phase in the new energy charging landscape. As of March 2025, the Chinese electric vehicle industry is witnessing a technological face-off: BYD has redefined charging efficiency with its “megawatt-level flash charging” technology on the Super e-platform, while NIO has teamed up with CATL to announce the construction of the world’s largest battery swapping network. Both developments emerged almost simultaneously but point towards distinctly different technological paths. The former aims to bridge the charging gap between electric vehicles and traditional fuel cars using ultra-fast charging, while the latter bets on a battery swapping model to create an ecological loop. This rivalry reflects a deeper industry contemplation on “range anxiety”: is the solution “faster charging” or “more efficient swapping”? Will market dominance be driven by technological breakthroughs or by ecological alliances reshaping the rules?
BYD’s “megawatt flash charging” technology pushes charging efficiency to its physical limits. By utilizing a combination of a 1000V high-voltage platform, 1000A current, and 1MW power, it achieves a charging speed that allows for 400 kilometers of range in just five minutes, nearly matching the refueling time of gasoline vehicles. This technological leap is supported by BYD’s comprehensive upgrade of its high-voltage systems, with core components like batteries, motors, and power supplies now compatible with the 1000V architecture, boosting energy transmission efficiency by over 30% and resolving compatibility issues associated with high-power charging. Additionally, the flash charging battery features a 50% reduction in internal resistance and optimized ion channel design, enabling it to withstand 1000A of high current. The self-developed 1500V silicon carbide power chip ensures the stability of the high-voltage system.
To expedite the implementation of this technology, BYD has proposed a “dual-gun charging” solution that allows two charging guns to operate simultaneously, transforming standard fast charging stations into ultra-fast charging stations. The “smart boosting” technology also ensures that existing public charging stations can adapt to the high-voltage platform, alleviating initial coverage issues. However, the widespread adoption of ultra-fast charging faces two primary challenges: first, the strain on the power grid. Megawatt-level charging requires extremely high instantaneous power, necessitating supporting energy storage systems. For instance, a charging station equipped with six ultra-fast charging stations could reach peak power of 6MW, comparable to the electricity demand of a medium-sized factory. BYD’s solution is to integrate photovoltaic energy storage systems with ultra-fast charging stations, leveraging solar power during the day and utilizing off-peak electricity rates at night to balance grid pressure. Second, concerns about battery lifespan arise. Although BYD claims its blade batteries can handle 10C charging rates, the long-term effects of frequent ultra-fast charging on battery health remain to be validated by the market.
In contrast to BYD’s focused approach, NIO and CATL‘s collaboration emphasizes ecological integration. They plan to build the world’s largest battery swapping network and advocate for unified battery standards. CATL is investing 2.5 billion yuan to support NIO Energy and is introducing chocolate battery swapping technology into NIO’s third brand, Firefly, allowing for “dual network operation” compatible with both NIO and CATL standards. The competitive advantage of the battery swapping model lies in its “time cost,” completing energy replenishment in three minutes without concerns about battery longevity. NIO has established over 3,100 battery swapping stations, covering more than 700 cities nationwide, with plans to achieve full coverage in 2,300 county-level administrative regions by the end of 2025. However, the significant drawback of battery swapping remains its cost; the construction of a third-generation swapping station can reach 3 million yuan, and it has long struggled with a closed ecosystem. The significance of this collaboration lies in opening standards and sharing costs, transforming battery swapping from a “solo performance” by NIO into a “joint performance” within the industry.
Moreover, the deeper value of this collaboration is evident in the management of the entire battery lifecycle. From factory testing and secondary use to final recycling, centralized operations can extend battery life, reduce user costs, and alleviate concerns about battery residual value. CATL’s involvement undoubtedly strengthens this system with enhanced technical backing and supply chain integration capabilities. For instance, CATL‘s latest “chocolate battery block” features a modular design, with each block providing a range of 200 kilometers, allowing users to flexibly add or remove blocks as needed. This design not only lowers the barrier to vehicle purchases but also facilitates the secondary use of batteries.
The question arises: are ultra-fast charging and battery swapping competitors or complements? From a user experience perspective, ultra-fast charging and battery swapping are not mutually exclusive. BYD’s flash charging technology is well-suited for individual users’ daily commutes, while the battery swapping model is more advantageous in high-frequency scenarios such as commercial vehicles (e.g., taxis, logistics trucks) and long-distance travel. The queue phenomenon observed at NIO’s battery swapping stations during peak hours in some major cities demonstrates the appeal of battery swapping in specific contexts. The divergence in technological paths also reflects the differing market positioning of the two companies. BYD aims to use ultra-fast charging technology to capture the mass market, while NIO seeks to establish a high-end service barrier through battery swapping. However, with CATL joining the fray, the battery swapping ecosystem may penetrate the mid to low-end market, as the Firefly brand’s compatibility with CATL standards suggests that even vehicles priced around 100,000 yuan could access battery swapping services.
The core issue for the widespread adoption of battery swapping lies in the unification of battery standards. Previously, competing automakers led to low utilization rates of battery swapping stations. In this collaboration, NIO and CATL are working together to promote “cross-brand and cross-model compatibility,” attempting to dismantle industry barriers. If they succeed in unifying standards, CATL, as the world’s largest battery supplier, could further solidify its market position through standardized battery packs, while NIO could shift from being an “infrastructure operator” to an “ecosystem leader.” In comparison, while ultra-fast charging technology does not require standardized protocols, it must contend with the costs associated with upgrading charging stations. BYD’s megawatt charging stations require supporting energy storage systems, with initial investments comparable to those of battery swapping stations, but their compatibility with existing charging networks may accelerate their adoption.
For CATL, battery swapping represents not only a technological choice but also an upgrade in its business model. By standardizing battery specifications, CATL can transition batteries from “one-time sales” to “whole lifecycle management,” encompassing production, swapping services, and secondary recycling to form a closed loop. In this model, the bargaining power of battery suppliers will significantly increase, potentially even influencing automakers’ battery designs. CATL plans to build 1,000 battery swapping stations by 2025 and collaborate with multiple automakers to launch battery-swappable vehicles, clearly aiming to become the “Android system” of the battery swapping era. This ambition has already raised alarms among competitors, as secondary battery manufacturers such as Guoxuan High-tech and Hive Energy collaborate with automakers to develop battery packs, striving to create a new alliance.
For NIO, its competitive moat is also facing significant challenges. Despite leading in the number of battery swapping stations, the company reported a cumulative net loss of 15.3 billion yuan in the first three quarters of 2024, with the battery swapping business contributing approximately 30% to this loss. Li Bin’s strategy to overcome this hurdle may involve spinning off the battery swapping business and bringing in more capital to alleviate the parent company’s financial burden. However, this approach carries the risk of undermining NIO’s brand premium if the battery swapping network becomes completely open. While collaborating with CATL may ease financial pressures, it also requires opening the ecosystem, which could dilute the exclusive service advantages of the Firefly brand once it adopts CATL‘s standards.
In conclusion, the competition between ultra-fast charging and battery swapping fundamentally represents the dual aspects of efficiency and ecology. BYD aims to disrupt the user experience through technology, while NIO and CATL seek to reshape the rules through ecological integration. In the short term, ultra-fast charging may be easier to popularize, especially in the personal user market. In the long term, if battery swapping achieves standardized protocols, it could unlock new scenarios in the energy storage sector. For the industry, the coexistence of both paths may be the optimal solution: establishing ultra-fast charging stations in urban centers to meet daily demands, while building battery swapping stations along highways to address long-distance travel. Ultimately, CATL’s strategic maneuvers and BYD’s rapid advancements will pave the way for a more mature electric era, where “range anxiety” may truly become a thing of the past.
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