A battery is an important component in an Electrical Vehicle (EV).
The success or failure of EV largely depends upon battery technology. Also battery price is a significant component in EV pricing.
EV manufacturers has two choices:
- To sell EV as a monolithic item with battery in it
- To sell EV without a battery. Third parties will provide Battery as a Service (BaaS).
Below is comparison of two approaches on various parameters from buyer’s point of view:
| Parameter | Monolithic EV with battery | EV with BaaS |
|---|---|---|
| Capital cost while purchasing the EV | You have to pay more when you are buying a monolithic EV with a battery as you are paying for both — EV and a battery in it. | You have to pay less as compared to the Monolithic EV option as you don’t have to pay for battery capital cost. |
| Buying process | You can buy a monolithic EV from a dealer and start using it. | You have to first buy an EV from a dealer. Then rent the fully charged battery from the BaaS service provider. |
| Charging Station | You have to worry about charging stations on your way and plan your journey accordingly. Also battery charging would take considerable time. | You have to worry about swiping stations on your way and plan your journey accordingly. Battery swiping would take less time than battery charging. |
| Partial charging | You can visit a charging station and get your battery recharged even if it is not fully discharged. It is like filling a partially empty petrol tank in a traditional IC engine car. | Battery swiping model will be challenging for partially discharged batteries. You have to wait till the battery is fully discharged. For longer journeys you have to keep a spare battery ready with you, which is additional cost |
| Abnormal situations | One vendor will take complete responsibility for solving the problem. | EV manufacturer and battery manufacturer will blame each other. |
| Battery replacement | You have to bear the capital cost for buying a new battery after the end of life of the existing battery. | There is no need to buy a new battery. |
| Battery disposal | You have to take responsibility for battery disposal after the end of life. | You don’t have to worry about battery disposal. |
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