ARC Ride signs Japanese battery swap station deal

From the newsletter

Kenya-based electric motorcycle company ARC Ride has partnered with Musashi Seimitsu, a Japanese company specialising in manufacturing and selling transportation equipment, particularly automobile and motorcycle parts. The deal will see the duo jointly develop and manage battery swapping services (BaaS) and related infrastructure. 

• ARC Ride has over 144 battery swapping stations across Nairobi. The partnership with Musashi will help the company accelerate its plans to establish more than 300 stations in Kenya’s capital.  

• Nairobi has significant potential for swapping station investors. The city has most of the country’s EV users, guaranteeing demand. 

More details

• Musashi’s partnership with ARC Ride began in 2021, where the Japanese firm was giving the EV firm grants to set up battery swapping infrastructure for electric motorcycles across Nairobi. As part of the electric two-wheeler ecosystem, a battery swapping model was implemented, achieving thousands of battery swaps per day.

• According to Musashi, the demonstration confirmed the business viability of the project, as the revenue potential per battery is expected to increase with the continued expansion of electric two-wheeler deployment.

• This led to the end of the grants programme in February 2025, paving the way for a commercial-driven deal between the two companies. In the new deal, both companies will collaborate to build a more sustainable and self-reliant business model in the Kenyan market, transitioning to full-scale sales and revenue-generating operations.

• “Leveraging the knowledge and trusted relationships cultivated over the years, we will continue to deliver sustainable services that meet local needs, with a particular focus on battery swapping services (BaaS) and the development of related infrastructure,” said Musashi. 

• Musashi’s expertise in precision engineering strengthens ARC Ride’s ability to scale its battery swapping and management platform, making EV adoption more viable for riders. ARC Ride’s assembly plant in Nairobi positions it as a key player in local EV manufacturing. Musashi’s investment supports regional expansion, helping ARC Ride extend its footprint beyond Kenya into other East African markets.

• The battery swapping business is increasingly attracting more investors, with EV firms such as Spiro, Roam Electric and Ampersand fighting for lucrative locations in Nairobi to set up swapping points. The country's growing number of electric motorcycle users is encouraging more firms to invest in charging and swapping infrastructure. 

Our take

• The transition from grant-funded infrastructure development to a revenue-driven business model reflects growing confidence in the viability of Battery-as-a-Service (BaaS) in Kenya. Musashi’s continued investment signals long-term commitment, moving beyond subsidies toward a sustainable, self-sufficient ecosystem.

• With more than 140 existing swap stations and plans to exceed 300 locations, ARC Ride’s expansion will significantly improve accessibility for electric motorcycle users. Nairobi’s dense urban mobility landscape, particularly with boda boda operators, provides a natural demand base for battery swapping.

• The entry of competitors like Spiro, Roam Electric, and Ampersand into swapping station development is intensifying the sector. As more firms compete for prime locations, the expansion of battery swapping networks will benefit EV users, but companies will face capital constraints and operational challenges.