PIT IN to launch Korea‘s first subscription-based battery business

Kia Corp. EV3

South Korean electric vehicle (EV) solution startup PIT IN is preparing to launch the country’s first ownership transfer subscription-based battery business later this year.

According to industry sources on Wednesday, PIT IN is set to introduce a subscription-based battery service by December 2024.

The service allows car buyers to purchase an EV at a price excluding the battery cost and then pay a monthly or annual subscription fee for the battery usage.

The battery subscription business model was conceived to address one of the main reasons for the slowdown in EV demand, which is the higher cost compared to internal combustion engine cars. Batteries are known to account for up to 40 percent of the price of an EV.

PIT IN plans to initially offer the service for about 20 EV3, an entry-level electric vehicle launched by Kia Corp., in the Korean market, targeting commercial taxi operators.

The company aims to lower the initial purchase price of the EV3 to the 15 million won ($10,847) range through the service.

Electric taxis cost around 43 million won for the Hyundai Ioniq 5 standard model and 42 million won for the Kia Niro Plus.

The KG Mobility Korando EV is also sold at 39.2 million won for the basic model.

PIT IN noted that the service will create synergy with its ongoing battery swap system business, which involves replacing the depleted battery in an EV with a fully charged one.