According to a Chinese large enterprise data technology service company-TianYanCha, Xpeng established a new company with a 5 million RMB registered capital a few days ago, which operates NEV battery swap facilities, recycling and reuse of discarded NEV batteries in Shanghai. That company is 100% owned by Xpeng.
Battery swapping technology has always been the biggest difference between Chinese EV companies and Tesla. China’s industrial power consumption is greater than that of the U.S., so there will be fewer substations on the grid in China, supercharging stations require a certain voltage, so under the influence of innate conditions which would lead Chinese EV companies to develop battery swap services.
This is one of the main reasons that made NIO to focus on developing battery swapping technology.
The ambitions of Xpeng
As mentioned above, this is affected by the local grid network and therefore growth of Xpeng may be limited.
For example, NIO has been targeting Europe for a long time, and there are many different small and medium-sized countries in Europe. In order to be able to flexibly cater to the electrical grids of different countries, it is necessary to use a more conservative battery technology, such as battery swapping technology.
The recent news that Xpeng is expanding to the Netherlands and Sweden is evidence of why the company was founded recently. Xpeng clearly wants to be ready for future global expansion.
This shows Xpeng’s determination to expand globally, but NIO’s battery swapping technology has been developed very well in the market. What’s more important is that Xpeng’s models did not start out with battery swapping technology as the base of R&D.
and if Xpeng needs to be on top for some time or even needs more technical investment.