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The Centre is planning to initiate fresh consultations to finalise interoperable standards for battery-swapping policies, Business Standard has learnt. As part of this endeavour, NITI Aayog — public policy think tank of the Government of India — has urged the Ministry of Heavy Industries to convene a meeting with industry stakeholders.
This move comes months after the industry failed to reach a consensus on the battery-swapping policy draft dated April 20, 2022.
Sources indicate that a high-level meeting involving key stakeholders is in the offing. Expected participants include representatives from the Aayog, the Ministry of Power, the Department of Science and Technology, the Bureau of Indian Standards, and the International Advanced Research Centre for Powder Metallurgy and New Materials.
“The objective is to unite all stakeholders under a common policy framework. These consultations are designed to achieve that goal,” said government officials privy to the development.
It is anticipated that the discussions will focus on technical specifications, safety standards, and the logistics of implementing interoperable battery-swapping technology (tech).
This initiative aims to streamline the standards for battery-swapping tech, ensuring compatibility across different electric vehicle (EV) models and charging stations.
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The move to standardise battery-swapping tech is seen as a pivotal step in addressing one of the EV sector’s key challenges: the lack of uniformity in battery formats and charging infrastructure.
By establishing these interoperable standards, India aims to provide a level playing field for EV manufacturers and charging infrastructure providers, ultimately benefiting consumers.
Battery swapping is a promising solution to alleviate concerns about EV range anxiety, as it allows EV owners to exchange depleted batteries for fully charged ones quickly.
The battery-swapping scheme was initially mentioned by Finance Minister Nirmala Sitharaman during her Budget speech in February 2022, and a draft policy was promptly issued by the Aayog in April of the same year.
The draft policy also delineated safety prerequisites, the implementation of a distinctive identification number for battery identification, battery monitoring, and traceability systems, recycling and refurbishment procedures, as well as a potential subsidy mechanism.
Battery swapping falls under the broader umbrella of battery-as-a-service business models, which involve users purchasing an EV without the battery, significantly lowering upfront costs, and paying a regular subscription fee (daily, weekly, monthly, etc) to service providers for battery services throughout the vehicle’s lifetime.
While battery swapping may make purchasing vehicles more appealing due to the lower initial costs, manufacturers are hesitant to embrace this approach. Such a policy could potentially erode their unique competitive advantages and revenue streams, and place pressure on them to overhaul their existing infrastructure.
Manufacturers currently leverage government subsidies tied to batteries to reduce the initial cost of their vehicles when they include batteries with their products. However, under the draft policy, battery providers will be the ones receiving these subsidies, potentially leading to original equipment manufacturers losing this upfront advantage.
Industry stakeholders claimed that it was not technically possible to make such standardised batteries, as each battery needed to be specifically designed to work with a vehicle, having unique dimensions, hardware, and software.
“Implementing any standard may inadvertently stifle innovation. Currently, all industry participants are actively researching to develop the most optimal batteries for their vehicles. Altering this approach could hinder the industry’s growth,” said an EV manufacturer.
