Trends in Battery Replacement Technology | A Close Look at Battery Swapping by Motorcycle and ATV Manufacturers

Advances in Battery Replacement Technology and the Motorcycle Industry’s Commitment to Decarbonization

The motorcycle industry, with its goal of decarbonization, has focused on the production of electric motorcycles, and the electrification of motorcycles is progressing rapidly. However, motorcycles face the challenge of achieving a practical cruising range because of the limitations that exist due to their small size characteristics and the limited size and installed capacity of their batteries. To address this issue, battery replacement technology is attracting attention.

In September 2021, the Interchangeable Battery Consortium for Motorcycles and Small Electric Vehicles, established by four major manufacturers (KTM, Honda, Piaggio, and Yamaha), aims to develop a worldwide system to replace charged batteries as a solution to the key challenges of range and charging time for the widespread use of electric motorcycles. The goal is to develop a system to replace the charged battery as a solution to the key issues of range and charging time for the widespread use of electric motorcycles worldwide.

The Swappable Batteries Motorcycle Consortium (SBMC) The Swappable Batteries Motorcycle Consortium (SBMC) The establishment of the Swappable Batteries Motorcycle Consortium (SBMC) is expected to further emphasize battery replacement technology and improve the utility of electric motorcycles. This will encourage the widespread use of electric motorcycles as a sustainable means of transportation.

However, the reality is that the electrification of motorcycles is still in its rudimentary stage, accounting for only 10% of the total. The participation of new manufacturers in the consortium and the unification of global standards in battery sharing could accelerate the global deployment of electric motorcycles. How much the share of electric vehicles in the motorcycle industry will increase in the coming years will be closely watched by manufacturers and their efforts.

Battery sharing service for motorcycle manufacturers in the Japanese market

Gachaco｜ENEOS x motorcycle manufacturer

In Japan, Gachaco, a battery sharing service and infrastructure building company led by the ENEOS Group, was established in March 2022.

ENEOS holds 51%, Honda 34%, and Kawasaki, Suzuki, and Yamaha Motor 5% each. ENEOS is working to develop infrastructure by leveraging the development capabilities of the four motorcycle manufacturers (Honda, Kawasaki, Suzuki, and Yamaha), which are working to standardize battery specifications, and by leveraging the strength of its network of approximately 12,000 service stations and distributors nationwide.
(See also: Gachaco Website Gachaco’s service stations and dealers are located throughout Japan.)

What is BaaS?
Batteries-as-a-Service (BaaS)” is the practice of renting batteries instead of buying them, thereby reducing initial costs. A depleted battery can be exchanged for a fully charged battery in a matter of minutes at a specialized automatic charging station, and an empty battery can be placed in a charging port, where it is fully charged and then exchanged for another vehicle.

Examples of battery swapping by foreign motorcycle manufacturers

Here are a few foreign motorcycle manufacturers that are working on battery replacement technology.

1. Gogoro (Taiwan)

Swap & Go

Taiwanese startup Gogoro is one of the hottest companies advancing battery replacement technology, and is already expanding not only in Taiwan but also in other Asian countries with high motorcycle sales, including China, India, Indonesia, Singapore, and the Philippines. In Japan, Gogoro has formed a strategic partnership with Sumitomo Corporation to launch a sharing service on Ishigaki Island in 2018.

2. KYMCO (Taiwan)

KYMCO Ionex Fully Explained

KYMCO in Taiwan has introduced IONEX Recharge, which, unlike Gogoro, allows battery replacement without the rider’s presence as part of the service. Vehicle batteries can be changed at designated times and locations, such as at night.

SUN Mobility (India)

SUN Mobility has formed a strategic alliance with TerraMotors, a Japanese EV venture, to develop battery replacement.

Reference: TerraMotors <As part of its entry into EV infrastructure in India, TerraMotors announces a strategic alliance with SUN Mobility, which has battery-replaceable infrastructure>.

4. Swobbee, Germany

Swobie, a Berlin-based startup company working to commercialize battery replacement for micromobility vehicles, is using Gogoro as a role model and has raised $6.5 million in new funding led by EIT InnoEnergy, the European sustainable energy promotion agency.

Reference: Berlin-based Swobbee wants to bring micromobility battery swapping to Europe

Battery Replacement Technology Trends in the Automotive Industry

While companies in the motorcycle industry are focusing on battery sharing, including the establishment of a consortium in this area, what about the four-wheeled vehicle industry?

BAAS was originally the brainchild of Israeli startup Better Place, which introduced the battery swap idea and gained attention in Silicon Valley in the mid-2000s. The $500,000 battery swap stations ultimately cost $2 million per unit to build, and Better Place’s only partner was Renault.

Reference:What is a Battery-as-a-service?

TESLA also took notice of this idea and attempted to replace the battery in the Model S, but the service gradually declined due to many problems.

Reference: TESLA Battery Swapping Pilot Progra

Meanwhile, in China, the development of services to realize battery sharing in four-wheeled vehicles is underway. NIO, a premium Chinese EV manufacturer, offers battery replacement as a leasing program, with a monthly subscription to address the issue of high battery costs. This allows the company to sell the vehicle itself without having to purchase the battery itself separately, which makes up the majority of the electric vehicle’s price. In addition, NIO is working to gain fans for its brand and offer special services for owners to differentiate itself from other automakers and increase its market share.

Battery as a Service (BAAS) has also been positioned by the Chinese government as an important means to support EV cost reduction and range improvement, and its deployment is being actively encouraged.

Will standardization accelerate the spread of battery replacement?

Standardization is key to widespread use, as users will have limited infrastructure for recharging and exchanging batteries if the battery standards of various manufacturers are not standardized.

In the motorcycle industry, Honda, Kawasaki Heavy Industries, Suzuki, and Yamaha Motor have agreed to standardize their battery replacement systems ( Link ), and development is underway in accordance with the Japan Automobile Service Standards Organization (JASO ) so that all companies can use the same system. The standardization will allow charging docking stations to be used by multiple manufacturers, reducing costs and making the service more attractive to riders.

On the other hand, looking at the spread of four-wheel charging infrastructure standards, Japan led the way in 2010 in standardizing the global standard for CHAdeMO, but as of January 2023, standards such asCCS and Tesla’s NSCS are more widespread globally, and global standardization based on Japan-led standards is in a difficult situation. The global standardization of Japan-led standards has fallen on hard times.

Therefore, the key to the speedy spread of battery replacement in motorcycles is whether Japan can take the lead in promoting standardization not only in the domestic market but also in overseas markets, as Japanese motorcycle manufacturers have a large share of the overseas market. According to data from Marklines, Asian markets such as India, China, Indonesia, and Vietnam are the largest markets for Honda Motorcycles, which boasts the world’s top share of motorcycle sales by region. The company is already conducting demonstration tests in India, Indonesia, the Philippines, and other countries using the Honda Mobile Power Pack, a removable battery, and it remains to be seen whether the construction of infrastructure will proceed smoothly.

Reference: Marklines <World Motorcycle Production and Sales: Overview of China, India, and ASEAN>.

Tesla Aims for Standardization in Charging Infrastructure

The aforementioned CHAdeMO standard is steadily gaining popularity as a quick-charging technology, especially in Japan. On the other hand, in many countries, region-specific standards are being developed, such as CCS1 and NSCC. In the North American market in particular, the North American Charging Standard (NACS) offered by Tesla as its own standard is rapidly gaining popularity, and not only Japanese automakers including Toyota, Nissan, and Honda, but also Sterantis and the Volkswagen Group are adopting NACS. and standard charging, lightweight chargers, and no need for a billing card.

Finally.

We have looked at the state of diffusion and domestic and international examples of battery replacement technology, one of the solutions to the challenges in the widespread use of electrification.

Currently, battery replacement technology is in its infancy in the electric motorcycle market. However, the introduction of battery replacement technology is important for increasing the market share of electric two-wheeled motorcycles. At the same time, the trend of manufacturers cooperating to promote standardization of charging standards should also be noted. While the motorcycle industry is expected to make progress in battery replacement technology, it is clear that various challenges exist in its deployment.

In battery replacement in the four-wheel industry, will there be other manufacturers aiming to develop battery replacement overcoming installation costs and other issues? In recharging facilities, different recharging standards are being developed in each market, and we need to pay attention to the Chinese market, which is leading the way in electrification, as well as trends overseas, and actively gather information.

Supervision: Turnpoint Consulting Media Team (Contact: Shintaro Kondo)
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