Enhancing the charging experience for next-generation plug-in electric vehicles

Development priorities for Original Equipment Manufacturers:

Despite some challenges, we expect DC fast charging to become a common feature in PHEVs. Meanwhile, range extender technology—led by Chinese automakers like Li Auto and Seres—will enable PHEVs to run on electric power first and switch to a gasoline engine when needed. 

Our research indicates growing global interest in range extender technology, likely fueled by relaxed regulations that recognize vehicles for their ability to operate with zero tailpipe emissions—that is, producing no pollution while running on electric power—even if they sometimes use an engine that emits pollutants. This approach is similar to the new energy vehicle (NEV) regulations in Greater China.

While most efforts focus on enhancing lithium-ion batteries, solid-state battery technology remains a long-term solution, aiming to support higher C-rates and safely handle more power without compromising longevity. However, there is still room for improvement. 

When CATL launched an advanced LFP battery in April 2024 with 4C charging and a 1,000 km range, the industry largely overlooked the implications for solid-state technology. As consumers and investors await breakthroughs in solid-state batteries, developments in existing technologies may reduce solid-state relevance. 

Challenges such as material handling and lithium-sulfide sourcing complicate the mass production of solid-state batteries and keep prices high. As a result, OEMs may focus on improving conventional lithium-ion technologies to meet mainstream consumer demands. Our data suggests that global annual solid-state battery sales will not exceed 1 million units until 2036—a 2.8% BEV penetration rate—primarily in Greater China and the US.

While solid-state batteries remain a longer-term prospect, battery swapping is gaining traction as a more immediate solution, particularly in China. Recent enthusiasm for standardizing battery swapping in China appears justified, especially as early adopters NIO and battery giant CATL develop different approaches to the technology. 

Battery swapping allows EVs to quickly exchange a depleted battery for a fully charged one at dedicated stations, eliminating the wait time for charging. The Choco-Swap technical standard, announced in March 2025, signals growing adoption among domestic and joint venture vehicles in China toward supporting this faster, more flexible charging alternative. 

Data from the E-Mobility Technology Module shows that by 2030, 74% of battery swapping applications will target vehicles with battery capacities above 60 kWh, primarily longer-range, larger segment models suited for highway use. However, uncertainties persist regarding the technology's viability beyond China, as we project annual sales of battery-swapping capable vehicles in major European markets and the US to exceed only 200,000 units by 2031.

Automakers without ambitions in China have little incentive to adopt battery-swapping technology, leading major global OEMs in China to depend on joint venture R&D for compatible architectures. This situation highlights Chinese companies' challenges in exporting the battery-swapping model to Europe. However, whether other global markets with significant Chinese sales might disrupt this trend remains to be seen.

Another promising technology—wireless charging—offers long-term potential but is falling behind, despite advantages like standardization, interoperability, tier 1 licensing, and increased convenience. 

Advanced technological solutions like wireless charging often struggle due to delayed market entry. We anticipate the adoption of wireless charging only after a major 2028 platform launch using induction-based technology.