Geely boss warns of EV battery lifespan crisis: “direct pack replacement is too expensive”

Geely Holding Group Chairman Eric Li (Li Shufu) has warned that the mismatch between electric vehicle and battery lifespans could become a bigger problem as China’s EV fleet ages. Replacing or repairing degraded battery packs can be expensive, potentially making otherwise usable older vehicles uneconomical to maintain.

Speaking alongside Nio founder and CEO William Li at the 2026 World Internet Conference in Wuzhen on November 5, Eric Li said the issue has yet to emerge on a large scale because China’s electric vehicle market is still relatively young.

The discussion comes as Geely and Nio expand their battery-swapping cooperation. Under a September 28 agreement, we previously reported, Geely agreed to contribute its entire Yiyi Power business and 640 million yuan (approximately 96 million USD) in cash in exchange for a 30% stake in Nio Power, subject to regulatory clearances and completion of the transaction.

Battery lifespan creates a problem for older EVs

William Li raised the issue from a 15-year vehicle lifecycle perspective, asking what happens when a car reaches 10 years or 200,000 km but still has five or six years of potential use remaining. Battery deterioration could affect its usability and resale value.

China’s 2015 policy governing new energy vehicle subsidies for 2016-2020 required passenger-vehicle manufacturers supplying vehicles eligible for central subsidies to provide at least eight years or 120,000 km of warranty coverage for traction batteries and other key components, whichever came first.

A separate recommended national standard, GB/T 46991.1-2025, took effect on July 1, 2026, establishing battery durability requirements and test methods for light-duty vehicles.

For M1 and M2 vehicles, the standard sets minimum State of Available Energy (SOCE) retention benchmarks of 82% at five years or 100,000 km, 75% at eight years or 160,000 km, and 70% at 10 years or 200,000 km. BEVs with a certified range of 220 km or less have separate lower thresholds of 80%, 72% and 67%, respectively. These are battery durability benchmarks, not extensions of the 2015 warranty requirement.

The standard also sets a separate limit of 5% for the relative deviation between the vehicle-displayed SOCE and the measured value. China’s new battery-health accuracy rules explain that measurement requirement in more detail.

The issue is already affecting China’s used-EV market. Rest of the world, citing International Energy Agency data, reported that around four out of five used-car dealers surveyed in China refused fully electric vehicles older than five years, partly because of battery-condition and replacement-cost concerns. China Automobile Dealers Association figures cited in the report showed that a three-year-old EV retained around 45% of its original value, down from nearly 55% in 2023.

Battery repairs can still be expensive

Eric Li also questioned whether dismantling and refurbishing existing battery packs offers an economical alternative to full replacement.

Yicai cited an engineer at CATL’s Ning Service Shanghai centre as putting a typical full battery-pack replacement at around 100,000 yuan (approximately 14,980 USD), compared with 10,000–20,000 yuan (approximately 1,500–3,000 USD) for repairs through the service. These are indicative figures from that operation, whose repair service is limited to CATL batteries, rather than universal prices across manufacturers and models.

Repair costs partly depend on battery construction. Cell-to-Pack (CTP) designs integrate cells directly into the pack, reducing conventional module structures but potentially making disassembly and individual cell replacement more complicated.

Cooling systems, electrical connections and sealing must be handled without compromising safety. Replacement cells must also match the remaining battery in capacity, voltage characteristics and internal resistance.

Whether a pack can be repaired economically depends on its design, the extent of damage and the availability of compatible components.

Geely and Nio expand battery-swapping cooperation

Battery swapping lets owners of compatible vehicles exchange a depleted pack instead of recharging it or buying a replacement battery. Nio reported 4,126 battery-swap stations and 5,307 charging stations in China as of September 27, 2026. Its network had completed more than 125 million battery swaps.

Under the Geely agreement, Yiyi Power’s commercial swapping operations will be integrated into Nio Power. Geely will develop compatible passenger vehicles, while Nio Power will provide swapping services. The companies will also work on consumer-facing swapping technologies and standards.

Nio China will retain a 63.6% controlling stake in Nio Power, while an existing investor holds 6.4%. Geely’s 30% stake is subject to operational performance adjustments and could fall to at least 20% if agreed milestones are not met. Geely also has an option to invest another 640 million yuan, potentially raising its stake to 34% without post-closing adjustments. Nio can exercise the option within the earlier of two years after the transaction closes or Nio Power enters binding agreements for a new financing round.

Nio will separately acquire a 10% stake in Geely’s Haohan Energy as part of the wider cooperation.

The agreement does not identify the first compatible Geely passenger models or provide a detailed consumer-network rollout timetable. Nio has set a target of operating 10,000 swap stations by 2030, although the companies have not specified how much of that network will serve Geely vehicles.

Battery swapping is distinct from Battery-as-a-Service (BaaS), which separates battery ownership from vehicle ownership. Under Nio’s BaaS model, Wuhan Weineng Battery Asset Co owns the battery and customers pay a separate subscription. When a BaaS vehicle is sold, transferring the battery lease requires an application, approval from the incoming owner and a new agreement.

Compatibility remains a major challenge

Expanding swapping across manufacturers requires common standards for battery dimensions, electrical connections, cooling systems, locking mechanisms and vehicle communication.

Beyond technical compatibility, a shared network needs enough compatible vehicles and battery inventory to justify station investment, maintenance and operating costs.

The wider question Eric Li raises remains unresolved: how can the industry keep an EV economically usable when its battery reaches the end of its useful life before the vehicle itself?

Sources: IT Home, 21st Century Business Herald, Geely Holding Group, Nio, China’s Ministry of Science and Technology, National Standards Information Public Service Platform, Yicai, Rest of World.