Let's start by acknowledging that electric mobility is still in its infancy. While it's true that EVs and battery development have made significant strides in recent decades, we lack retrospective insight to precisely gauge our current position in this evolution. Undoubtedly, Tesla acted as a significant catalyst for the industry's initial growth spurt, yet the law of diminishing returns applies here too, and it does so brutally in the form of Chinese smart EV car brand NIO.
My first encounter with NIO was in 2017, thanks to a monumental PR stunt featuring the electric NIO EP9 hypercar, which set a record time at the legendary Nürburgring race circuit in Germany. It would be a while before that record was surpassed, but the goal was achieved; the name NIO became established. However, it would take some time before the first NIO vehicles appeared on European roads.
Norway served as a testing ground for the European rollout. The first ES8s were sold to early adopters, and soon after, a NIO house opened in one of the city's most expensive locations. NIO had arrived. Furthermore, a modest fleet of NIO taxis now roam the streets of the Norwegian capital. Nevertheless, the number of cars sold remained somewhat limited. This is partly due to inflated expectations within the rapidly evolving and somewhat saturated EV market, where a plethora of new brands and models vie for top-selling status. However, it's also because NIO's success isn't solely reliant on selling large volumes of cars.
In addition to its significant technological edge over Tesla, BYD, and numerous other EV brands, NIO thinks ahead. Over the past decade, they've rapidly constructed an extensive network of battery swap stations. As I write, I'm uncertain of the exact number currently operational, but it's in the thousands, with new swap stations being added monthly. So far, this represents the most mature and pragmatic approach to electric mobility in my opinion. Skipping the technicalities, essentially, you purchase the car without the battery. Instead, you lease it and can swap it within 5 minutes at a station along the road. Thus, you acquire a NIO that you can drive for 15 years without worrying about battery degradation. This marks a significant leap forward.
There are several reasons why this approach is brilliant. Firstly, you only spend 5 minutes to regain a range of between 400 and 500 km. Of course, eventually, charging speed will no longer be an issue. However, a crucial argument is that battery degradation becomes a thing of the past. Each time you swap, you receive a fresh battery installed under your car. Moreover, you don't have to worry about installing a charging station at home.
What's ingenious is NIO's foresight in this approach. The enormous cities, particularly in Southeast Asia, with their millions of inhabitants, lack the infrastructure to support charging hundreds of thousands of cars at home. NIO understands this and has erected battery swap stations along all major highways in China, allowing you to exit the city without needing to charge and make a journey of 700 or 800 km with just one stop, without range anxiety. You might find it hard to imagine, but eventually, you'll be able to make a car journey from Washington DC to San Francisco without range anxiety, swapping your battery just four times. Yes, you read that correctly. Suddenly, every (emotional) argument against switching to electric driving evaporates. However, the US is not there yet, although I expect it won't be long. The rationale behind the internal combustion engine is rapidly fading. Diesel and petrol have served us well, but planetary limits demand a firm halt.
But it doesn't end there. NIO recently struck a partnership deal with Geely, one of the world's largest mobility conglomerates, to utilize NIO's battery swap stations and platforms. Geely owns and controls the development of Volvo, Polestar, Lotus, London Electric Vehicle Company (yes, the one with the iconic London taxis), Zeekr, Lynk & Co, and a few other obscure car brands. Ultimately, they sell 12 million cars worldwide each year. You get the picture. NIO has taken a massive step towards making the battery swap system the standard for a slew of car brands with enormous brand awareness.
I sense my own excitement as I write this because it feels like NIO has tapped into a gold mine when it comes to democratizing electric mobility and pardon me the pun regarding the nature of the Chinese government. Regardless, NIO is brilliant, and I hope the rest of the world realizes this sooner rather than later, not allowing itself to be hindered by unfounded protectionism or fear of the unknown. We ought to embrace brilliant technology and vision that helps us in moving forward, not fight against it. NIO will approximately launch its first cars in the USA approximately in 2025.