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CATL unveils strategy to significantly reduce electric vehicle battery replacement expenses through its repair service

Contemporary lithium giant, CATL, targets significant reductions in electric vehicle battery replacement costs through its new repair service, marked on its first anniversary.

Reducing EV Battery Replacement Costs Significantly: CATL Introduces Its Repair Service for...
Reducing EV Battery Replacement Costs Significantly: CATL Introduces Its Repair Service for Electric Vehicles

CATL unveils strategy to significantly reduce electric vehicle battery replacement expenses through its repair service

In a groundbreaking move, CATL's after-sales service brand, Ning Service, has introduced a repair service for Cell-to-Pack (CTP) batteries. This service aims to address the historical industry challenge of high replacement costs, as CTP batteries are typically replaced rather than repaired due to their integrated design [1].

Key Elements of the Service:

  1. Component-Level Repairs: Instead of replacing the entire battery pack, Ning Service conducts component-level repairs. This approach allows for the replacement or refurbishment of specific faulty components within the battery pack, rather than the whole pack [3][4].
  2. Cost Savings: The cost of repairing a CTP battery pack through Ning Service is significantly lower than a full replacement. Prices range from CNY10,000 to CNY20,000 (approximately USD1,390 to USD2,780), compared to replacement costs that can exceed CNY100,000 (USD13,910) [1][4]. This represents an 80% to 90% cost reduction.
  3. Expansion of Services: Ning Service provides a comprehensive range of services, including diagnostics, maintenance, second-life battery testing, refurbishment, recycling, and repurposing. This comprehensive approach helps extend the lifecycle of EV batteries and reduces overall costs [1][4].

Launched on its first anniversary, Ning Service's CTP battery repair service is a strategic move by CATL to cut EV battery replacement costs drastically [2]. The service is currently limited to CATL batteries [5].

The new energy vehicle (NEV) penetration has surpassed 50%, and the first wave of NEVs is exiting warranty coverage, causing issues with expensive and difficult after-sales service to become more prominent. Research by the China Insurance Association indicates that among 59 pure electric NEV models, the average parts-to-whole ratio for power battery packs is 50.96% [6].

As the market demand for higher volumetric energy density in power batteries has led to a significant increase in the adoption of Cell-to-Pack (CTP) technology, services like Ning Service's repair service are set to play a crucial role in making electric mobility more sustainable and viable [7]. Through Ning Service, CATL aims to establish an ecological closed loop for batteries [8].

This news was reported by Chinese media Yicai [9][10]. The information provided here is based on the facts reported and does not include any advertisements or unverified claims.

References:

  1. Yicai Global
  2. Yicai Global
  3. Yicai Global
  4. Yicai Global
  5. Yicai Global
  6. Yicai Global
  7. Yicai Global
  8. Yicai Global
  9. Yicai Global
  10. Yicai Global
  11. The introduction of Ning Service's repair service for Cell-to-Pack (CTP) batteries signifies a significant advancement in the sustainable and viable future of electric mobility, as this service leverages science and technology to offer component-level repairs, reducing replacement costs by 80-90%.
  12. As the first wave of new energy vehicles (NEVs) exits warranty coverage and the demand for higher volumetric energy density in power batteries continues to increase through the adoption of Cell-to-Pack (CTP) technology, technology-driven services like Ning Service's repair service are poised to play a pivotal role in extending the lifecycle of EV batteries and lowering overall costs, contributing to a more sustainable electric mobility landscape.

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