Part 1/3: Manufacturers’ valuation of electric motorcycle batteries
Part 2/3: What customers say about electric motorcycle batteries
Battery swapping is a revolutionary concept in the world of electric vehicles. It allows riders to exchange their depleted batteries for fully charged ones at designated stations, much like refueling a traditional vehicle. This technology has the potential to transform the electric motorcycle industry by making it more convenient, efficient, and cost-effective.
Like we have mentioned over the past few weeks in this series, the battery is the key(est) to the entire ecosystem of electric mobility, and its management is crucial for the success of electric motorcycles.
In this three-part article, we spoke to three electric motorcycle company top executives —from GOGO Electric, Zembo Motorcycles, and Spiro Uganda — who are at the forefront of innovation, visited a number of swap stations, and interacted with riders on the value of the battery, how it works, how swapping is done, the economics involved, and the bike customer sentiments.
Each electric motorcycle company has mastered the business model centered around selling electric motorcycles on a pay-as-you-go basis and providing battery-as-a-service (BaaS) through a network of swap stations.
At a brick-and-mortar swap station, the process involves the rider arriving at the station, where an agent captures the vehicle number to identify the rider. The agent then scans the battery to determine its state of charge (SoC) and assigns a new battery.
The rider is prompted to confirm the payment based on the SoC difference between the old and new batteries. The process takes about two minutes, making it as convenient as refueling a traditional vehicle.
The cost of battery swapping in Uganda
The economics of battery swapping are crucial for the success of electric motorcycles. By using a battery-swapping system, riders can save significantly on maintenance and fuel costs compared to traditional internal combustion engine (ICE) motorcycles.
At Zembo, every battery swap costs the rider approximately UGX6,000, which is comparable to the cost of refueling a traditional motorcycle. This cost is based on the energy consumed during the swap, ensuring that riders only pay for the amount of energy they use.
The company’s strategy is to build and own a pan-national network of swapping stations, aiming to expand its fleet to over 2,000 motorcycles and 60 swap stations by 2025.
Spiro, which operates 22 brick-and-mortar battery swap stations and numerous automated smart swap stations across Kampala, estimates that riders can save around 28-30% more than they would on fuel costs alone, resulting in a total savings of 40% or more.
In terms of cost per unit of SoC, Spiro charges UGX84 per percentage battery unit. Therefore, a full battery (100% SoC) costs UGX8,400. This pricing structure ensures that riders only pay for the energy they consume, making the system cost-effective and environmentally friendly.
Spiro’s automated smart swap stations use NFC cards and interactive touch screens to facilitate the swap process. Riders interact with the station’s platform, which calculates the SoC difference and initiates a payment prompt. Upon successful payment, a fully charged battery is automatically dispensed, ready for the rider to continue their journey.
Benefits of battery swapping
Battery swapping offers several benefits that make it an attractive option for electric motorcycle riders.
Firstly, it eliminates the need for lengthy charging times, which can be inconvenient for riders. By swapping batteries, riders can quickly and easily recharge their vehicles, ensuring they are always ready to go. This convenience is particularly important for boda boda drivers who rely on their motorcycles for their livelihoods.
Secondly, battery swapping reduces the need for large, heavy batteries that can compromise the performance and handling of the motorcycle. By using a standardized battery system, manufacturers can design lighter, more affordable electric motorcycles that do not sacrifice performance for range. This approach also allows for the development of new batteries with improved capacity or reduced weight, further enhancing the overall efficiency of the vehicles.
Thirdly, battery swapping supports a circular economy by facilitating the reuse and repurposing of batteries. This approach aligns with the principles of sustainability, reducing waste, and promoting the efficient use of resources.
Also read:
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- Uganda’s electric vehicle revolution: Driving towards a sustainable future
- SPIRO, Gov’t sign MoU to deploy electric motorbikes to reduce harmful emissions
- SPIRO secures $50M from Afreximbank to boost sustainable transportation in Africa
- Government pledges UGX32.5bn for completion of Kiira Motors’ industrial plant
- Karaa Africa CEO debunks some common misconceptions about electric vehicles
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The impact on electric motorcycle ownership costs
James Obarowski, the CEO at Zembo Motorcycles states that one of the reasons for battery swapping is to make sure that the battery is charged properly and that “we’re able to do any maintenance if we need to on the batteries.”
He adds, “We monitor them in real-time and are able to see the health of the battery. We do analysis and if we see the battery as a health issue there’s an automatic alert that’s triggered to our battery lab, and then we will set that battery aside and bring it back to our battery lab and make some repairs or adjustments so that it can go back into the field and achieve an acceptable performance and efficiency for the end user.”
From all the stakeholders we spoke to, it became clearer through each conversation that battery swapping significantly impacts the overall cost of ownership for electric motorcycles by offering several advantages over traditional charging methods.
Battery swapping allows riders to quickly exchange depleted batteries for fully charged ones, reducing the downtime associated with lengthy charging times. This convenience is particularly beneficial for boda boda drivers who rely on their motorcycles for their livelihoods. Instead of waiting for their bikes to charge, they can simply swap out the battery and continue their journeys without interruption, maximizing their productivity and earning potential.
Additionally, battery swapping eliminates the need for riders to purchase and maintain their own batteries, further reducing the overall cost of ownership. This is because the battery swapping service providers are responsible for the upkeep and replacement of the batteries, allowing riders to focus on the operation of their vehicles without the added burden of battery maintenance.
Battery swapping stations charge riders based on the energy consumed, ensuring that they only pay for the amount of energy used. This pricing structure makes battery swapping cost-effective compared to traditional fuel-based motorcycles, where riders pay for the fuel regardless of the distance traveled. This can result in significant savings for riders, especially those who have high daily mileage requirements.
You also ought to note that battery swapping systems often include intelligent charging systems that help maintain the health and performance of the batteries. This extended battery life means that riders can use their motorcycles for longer periods without worrying about battery degradation, further reducing the overall cost of ownership.
While battery swapping stations require significant initial capital investment for hardware, software, and property rental, long-term savings and increased efficiency can offset these costs. As more riders adopt battery swapping, the accumulated cash flow for operators increases, making the service more profitable and potentially leading to lower costs for riders.
The market tends to prefer plug-in motorcycles over battery-swap motorcycles, but the share of battery-swap motorcycles gradually increases over time. As electricity prices rise, battery swap bikes become more popular, further driving the adoption of this technology. This shift in market preference can further enhance the cost-effectiveness of battery swapping for electric motorcycle owners.
Written in collaboration with Douglas Kikonyogo (X, @doug_kikonyogo)
