Switching the UK electric vehicle model to Battery-as-a-Service (BaaS) could cut upfront costs for consumers by 30% and hugely support the 2030 ICE ban.

The Battery-as-a-Service model is currently being used at scale in China but has gained little attention from the UK government so far – despite a claimed shortage of electric vehicle charge points

A new paper from Cornwall Insight and law firm Shoosmiths examines the BaaS model, which is currently being used at scale in China but has gained little attention from the UK government so far – despite a claimed shortage of electric vehicle charge points.

BaaS enables EV owners to swap out depleted batteries for fully charged ones at a service station via a subscription service. These batteries can still be charged using normal charge points, with BaaS complementing the EV infrastructure that has already been installed.

The report puts forward several potential benefits of the BaaS model – based on global case studies of the technology in use. Alongside the cost benefits, it could reduce issues around range anxiety through the ability to swap a depleted battery for a fully charged battery in a matter of minutes.

It also offers a solution for inner city charging where users may not have driveways to deploy at-home plug-in charge points.

And it delivers flexibility for the electricity network, enabling unutilised batteries to be discharged onto the electricity network at swap stations during peak hours, and providing battery recycling and reuse opportunities.

But the report also acknowledges the inherent challenges with the BaaS model, including a lack of battery standardisation across vehicle manufacturers – meaning swap stations are not currently scalable, with each station only able to service a specific make or model of car.

Other hurdles include shortages of the raw materials needed to manufacture batteries and uncertainty over battery ownership, especially when the EV is re-sold. Major investment is also needed to develop and service the technology and infrastructure the model requires.

Despite this, the paper suggests the BaaS model could work in the UK with the right investment, business collaboration and regulatory framework.

Dr Matthew Chadwick, lead research analyst at Cornwall Insight, said: “Moving to the battery swap model would not be an easy transition and any success would rely on EV manufacturers co-operating in the standardisation of their car batteries, as well as working through a number of other concerns. However, the Government’s target to put an end to the sale of all new petrol and diesel cars by 2030 is very ambitious, and it is clear that sticking to a purely charging EV model, with the need to roll out extensive charging infrastructure, will likely lead to the target being missed.

“The BaaS model has the potential to be the out-of-the-box thinking needed to increase EV sales, take the pressure off the infrastructure programme, and help the Government deliver on its promise to lower emissions and reach net zero.”

Jonathan Smart, partner and head of mobility at Shoosmiths, added: “The growth of BaaS in the UK is reliant on creating a supportive regulatory environment in which companies across the mobility sector can collaborate. We believe this report can spark the conversation needed to drive change, while encouraging increased research and development into BaaS and the role it could play as part of the UK’s EV infrastructure.”

To access the ‘Battery-as-a-Service: an underexplored opportunity?’ paper from Cornwall Insight and Shoosmiths, click here.