For the past decade, Abul Kalam Azad, a resident of Ishwarganj upazila in Mymensingh district, has earned his livelihood by driving a battery-operated three-wheeler auto-rickshaw.
However, the last two years have brought a significant change to his life. An innovation called battery swapping has increased his daily income by at least 500 taka. This additional income has provided financial stability to his family and reduced their debt burden. Now, Abul Kalam hopes this technology will reach more people like him.
Previously, Abul Kalam used lead-acid batteries (locally known as ‘pani’ batteries) in his rickshaw. These batteries were permanently installed and required 10-11 hours of daily charging. He could not operate his rickshaw during this charging time, which directly impacted his earnings.
Now, with battery swapping technology, he uses lithium-ion batteries provided by a local startup company. Instead of waiting hours for charging, he can swap his depleted battery for a fully charged one in under five minutes. This allows him to spend more time on the road, transport additional passengers, and significantly increase his income.
A game-changing innovation
Cassetex, which began commercial operations in Bangladesh in 2022, facilitates this service. The company has set up designated swapping stations across its operational areas, where batteries are pre-charged and ready for use.
Drivers like Abul Kalam, who are registered with the company, can quickly swap their batteries at these stations in less than five minutes. In exchange, they pay a nominal fee to the company. This system saves time and reduces operational costs for the drivers.
Battery swapping is a century-old concept, but its modern application in electric vehicles (EVs) began just a decade and a half ago. Today, this technology is revolutionizing how we think about sustainable transportation, particularly in Asia.
While China leads the charge, countries like India, Indonesia, Thailand, Vietnam, Malaysia, and Singapore are rapidly adopting this innovation.
In Bangladesh, however, battery swapping is taking a unique path, focusing on three-wheelers rather than the two-wheelers popular elsewhere. The reason is simple: electric two-wheelers are still relatively rare in the country. This is particularly significant in a nation like Bangladesh, where battery-powered rickshaws, a critical component of the informal transport sector, provide livelihoods for millions.
According to a report by Pure Earth, a nonprofit organization focused on tackling pollution and toxic waste in developing countries, Bangladesh has approximately 4 million battery-operated rickshaws. However, less than 1% of these vehicles currently utilize battery-swapping services.
Only a handful of companies are pioneering battery-swapping initiatives in the country, with Cassetex leading the charge. The company has begun rolling out its services in selected areas, including several districts in the country’s southwestern and northern regions.
Lead-acid VS lithium-ion
Locally manufactured lead-acid batteries are commonly used in three-wheelers across the country. However, Cassetex is breaking this norm by replacing lead-acid batteries with lithium-ion alternatives.
Lithium-ion batteries offer several advantages: they are cheaper to charge, have a longer lifespan, are easier to recycle, and produce significantly less pollution than lead-acid batteries. This shift benefits rickshaw drivers by reducing operational costs and contributing to a cleaner and more sustainable environment.
Mohammad Tauseef Anwar, Co-founder and Chief Business Officer of Cassetex, says, “By adopting battery traceability, Cassetex is addressing the environmental and economic challenges associated with traditional lead-acid batteries, paving the way for a greener future in Bangladesh’s electric vehicle sector. This innovative approach can potentially transform the battery industry in Bangladesh.”
The Cassetex team aims to transition more than four million vehicles and save 6.7 megatons of CO2 annually. For this vision, Cassetex won first prize in ‘EU KIC Climatelaunchpad 2020,’ a global green business ideas competition that recognizes the world’s most innovative climate entrepreneurs.
Again, traditional charging methods for three-wheelers come with significant challenges. Low-quality batteries require frequent charging, consuming over 5% of Bangladesh’s total electricity, which leads to energy waste and excessive heat generation.
The charging time for lead-acid batteries typically ranges from three to four hours for smaller sizes and nine to ten hours for larger ones. In contrast, lithium batteries can be fully charged in as little as 15 minutes to a maximum of 2 hours.
Lead-acid batteries are extremely short-lived, often becoming ineffective within a year. Their poor quality affects performance and reduces drivers’ incomes.
From an environmental perspective, lithium-ion batteries do not contain acid or liquid chemicals. They have a longer life span, require less recycling energy, and do not produce as many contaminants as lead-acid batteries during recycling, making them safe for the environment. In contrast, lead-acid batteries are prone to acid leakage, which can sometimes result in accidents.
Lead-acid batteries are also not properly recycled, and the industry is plagued by widespread child labor. Local drivers have reported that reliance on traditional lead-acid batteries has led to financial losses, forcing many low-income individuals into a debt trap rather than improving their earnings.
Lithium-ion batteries typically last four to five years and are about four times lighter than lead-acid batteries of the same capacity. However, they are significantly more expensive—four to five times more than lead-acid batteries.
For instance, a 60-volt and 140-ampere-hour lead-acid battery costs approximately BDT 70,000 to 80,000, whereas a lithium-ion battery of the same capacity costs over BDT 250,000. Such a high price makes lithium-ion batteries unaffordable for low-income drivers.
Benefits that come along
Battery swapping is significantly impacting battery prices. Drivers no longer need to purchase batteries upfront; instead, they pay a fixed rental fee for battery usage.
Cassetex has estimated that drivers using battery-swapping services save 30-40% on their costs. In addition to supporting drivers, the company is also helping to create small-scale energy entrepreneurs through community ownership.
There are even more compelling advantages. Tauseef Anwar explained that their innovative battery-swapping technology enables comprehensive tracking of all batteries provided to drivers. This system allows them to effortlessly monitor critical metrics such as battery health, age, performance, and remaining lifespan.
Each Cassetex station is designed to store between 5 and 30 batteries simultaneously. Both grid-based and solar-powered charging methods are available. If a battery’s health deteriorates, it is promptly replaced with a new one, ensuring drivers always have access to reliable power.
The electricity load at each charging station can be precisely managed. Cassetex’s technology also includes features to prevent battery-powered rickshaws from entering restricted roads, enhancing regulatory compliance and operational efficiency.
Tauseef Anwar stated, “In Bangladesh, no generation has ever been truly responsible for the environment. In most cases, the risks have simply been passed on to others.”
He highlighted that battery swapping encompasses two critical dimensions – environmental and commercial. This dual focus underscores why responsibility and efficiency are pivotal in driving the shift toward battery swapping.
He also noted that while the battery industry in Bangladesh has fallen short in terms of environmental protection, there is renewed potential for growth and innovation within this sector.
Looking ahead
Although Cassetex’s core business currently focuses on three-wheelers, the company is also exploring battery-swapping solutions for electric two-wheeler motorcycles, replacing diesel-powered agricultural machinery with electric motors, and introducing battery swapping for small boats on waterways. Cassetex is actively working on these initiatives.
However, industry experts believe that with the right policies and incentives, battery swapping could revolutionize the EV ecosystem in Bangladesh. Government support, such as subsidies for battery manufacturers and tax breaks for swapping service providers, could accelerate the growth of this sector.
Partnerships between private companies and local authorities could help establish a robust infrastructure for battery swapping nationwide. This could lead to a future where innovation drives economic growth and environmental sustainability.
