FM Proposes Battery Swapping Policy

In order to scale, promote and use electric vehicles in the country, Union Finance Minister Nirmala Sitharaman on Tuesday announced that a policy for the battery as a service or battery swapping is being prepared and deployed. The announcement was done in the Budget speech of 2022.

During the speech she said, for setting up battery stations at a mass level a battery swapping policy will be brought and interoperability standards will be formulated. With this private players will be encouraged to develop sustainable and innovative models for the battery as a service which will increase efficiency in the electric vehicle ecosystem.

Electric vehicle players have welcomed the move and believe it will give impetus for electric vehicle growth in the coming years.

Sohinder Gill, Director General, Society of Manufacturers of Electric Vehicles (SMEV) said, “We welcome the measures announced by the Finance Minister, today. The budget for 2022–23 gives a huge impetus to the electric vehicle (EV) industry. Introducing the battery swapping policy and recognizing battery and energy as a service will help to develop charging infrastructure and increase the use of EVs in public transportation. It would motivate businesses engaged in delivery and car aggregation businesses to incorporate EVs into their fleet.”

“It will create new avenues for companies to venture into the business of battery swapping. Additionally, creating special clean zones will further accelerate the adoption of EVs and spread awareness amongst the citizens. The move will benefit the whole segment, i.e E2W, E3W, E-cars, and buses.” he added.

Samrath Kochar, CEO & Founder of Trontek has described Budget 2022 as growth-oriented. The announcement towards promoting domestic manufacturing and supporting the development of indigenous capabilities will help the economy in the long run.

The Budget also amply provides towards promoting the adoption of clean energy and electric vehicles. The battery swapping policy with interoperability will boost the adoption of EVs as it will help allay the range anxiety and bring the EVs at par with ICE vehicles in terms of time taken for replenishment of fuel.

A leading supplier for electric vehicles, Sona Comstar spokesperson, said, “The battery swapping policy and rapid expansion of EV charging infra will help convert both customers and manufacturers that were on the fence about EVs. An excellent route to move toward sustainable mobility.”

Varun Goenka, CEO, and Co-Founder, Chargeup, said, “The government’s announcement to encourage private sector players to develop sustainable and innovative business models in this arena, is a welcome move. Further, the support for interoperability would lead to battery standardization. The push towards public transit usage by establishing more EV exclusive zones wherein private or non-electric vehicles will be barred is something we had been anticipating.”

Akshay Singhal, Founder, Log 9 Materials said, “Openness to accommodate new-age business models like battery swapping are a welcome step, financial decoupling of batteries irrespective of swapping will enable faster adoption. It would be exciting to see some great climate focussed debt lines coming in from blended finance.”