China’s Kandi Technologies has established a subsidiary, China Battery Exchange Technology (CBET), to swap and recycle electric vehicle (EV) batteries.
According to a media statement released by Kandi on September 14, CBET will help potential investors in participating across the EV batteries value chain, which includes battery swapping systems and EV battery recycling.
Under the battery swapping system, currently being encouraged in China, companies can set up swapping centers where an EV can replace a spent battery with a charged one.
Although the company did not disclose the volumes of EV batteries it expects to swap and recycle through the subsidiary, Hu Xiaoming, chairman and chief executive officer of Kandi said that the Chinese government has included battery swapping stations in its infrastructure proposal for renewable energy, positioning CBET for strong growth in this segment in the long term.
Kandi manufactures and commercializes EVs, all-terrain vehicles (ATVs), battery packs, automobile motors, controllers for electric vehicles, and air-conditioning systems. According to the Jinhua, China based company’s latest financial results, its EV parts revenue fell by 34.1pc in Q2 2020 to $12.51mn from $18.22mn during the same quarter last year.
During the quarter, Kandi’s sales of battery packs, body parts, EV controllers, and other EV auto parts made up 64.4pc of its total sales, which stood at $19.44mn down from $24.14mn in Q2 2019.