CATL and the UK’s Octopus Energy announced on June 22 that they will establish a 50-50 joint venture to build a battery-swap network for electric heavy-duty trucks. Credit: CATL
- CATL will form a 50-50 joint venture with the UK’s Octopus Energy to jointly build a heavy-truck battery swap network in Europe.
- The network is planned to comprise more than 30 swap stations by 2035.
CATL (HKEX: 3750), the world’s largest power battery maker, is turning its sights to Europe’s freight market.
The company announced on Monday that it would form a 50-50 joint venture with Octopus Energy, the UK’s largest household energy supplier.
The two sides will jointly build a battery swap network for electric heavy trucks, bringing CATL’s Qiji Energy swapping technology to the European market, according to a statement.
Under the plan, the first demonstration swap stations are expected to be built and put into operation in the UK in 2027. These sites will prioritize coverage of highway trunk lines and key logistics ports, before gradually extending to Scotland and Wales.
By 2035, the number of swap stations is expected to expand to more than 30, forming a network covering the UK’s core trunk routes.
The two companies said that once completed, the network could serve more than 300,000 electric trucks. It could also generate more than £30 billion of private investment in Europe.
CATL’s core rationale is cost, with the company arguing that battery swap technology can push the operating costs of electric trucks below those of diesel trucks.
Under the swapping model, electric heavy trucks can unload a depleted battery and swap in a fully charged one within minutes. By comparison, current fast charging still takes nearly an hour to complete.
File photo shows a CATL battery swap station for passenger vehicles. Credit: CnEVPost
Because the battery does not need to be purchased with the vehicle, swapping can also significantly lower the upfront cost of buying an electric truck.
In addition, centralized battery management and slower charging help to extend the service life of the cells.
“With battery swapping . . . we will be cheaper than diesel is today,” Greg Jackson, founder of Octopus Energy, told the FT.
He acknowledged that the war in Iran had pushed up diesel prices. But he stressed that even if diesel prices fell back, the costs of the two would be roughly comparable.
Unlike diesel, the cost of swapping will continue to fall year after year, according to Jackson.
Notably, the swap stations will be owned by truck manufacturers and fleet managers, rather than by CATL or Octopus Energy, the FT report noted. Governments are expected to treat them as critical infrastructure.
Battery swap technology was pioneered by Chinese EV maker Nio Inc (NYSE: NIO) and is becoming increasingly widespread in China. But constrained by the high cost of building stations, the model has expanded relatively slowly overseas.
In its home market of China, CATL’s expansion has been more aggressive. The company plans to build 900 heavy-truck swap stations in China this year, up from about 305 last year.
CATL has previously said that by 2030, 80% of China’s core logistics trunk roads will be covered by its battery swap network.
Robin Zeng, the battery giant’s founder, chairman and CEO, predicted in April 2025 that by 2028, pure electric models would account for half of China’s heavy-truck market.
The Chinese government is also stepping up support, targeting a fleet of more than 1.6 million new energy heavy trucks by 2030.
The official goal is for new energy heavy trucks to carry 18% of highway freight by 2030, according to a government document released earlier this month.
CATL and DST plan to put 5,000 battery-swap light trucks into operation in an economic zone in southern China by the end of 2026.
