In this study, environmental impact of battery swapping services (BSS) for electric vehicles (EVs) is assessed to analyze the environmental benefit of managing batteries in product service system. While the life cycle greenhouse gas (GHG) emissions of EVs are estimated to be smaller than that of internal combustion engine vehicle (ICEV), the high purchasing cost, short cruising range, long charging time, and lack of charging facilities exist as issues hindering the proliferation of EV. Battery swapping, which has been expanding mainly in China in recent years, is a new technology that may resolve these issues. There exist past studies on life cycle assessment (LCA) of EV and life cycle simulator of EV batteries, but it remains unclear how BSS contribute to the overall environmental impact. To analyze the environmental impact of BSS for EVs, this study developed various scenarios with four scenario variables: vehicle technology, battery materials, battery capacity, and end-of-life. For each scenario, life cycle GHG emissions and resource consumption were comparatively assessed. Total material requirement (TMR) and crustal scarcity indicator (CSI) were applied as resource consumption indicators. The results show that a battery swapping EV with a small-capacity NMC111 battery (40 kWh) that is completely recycled and reused can reduce the life cycle GHG emissions by 41% compared to a conventional EV with a large-capacity NMC111 battery (100 kWh) that is neither recycled nor reused. In the same comparison, TMR and CSI were reduced by 82 and 88%, respectively. Furthermore, focusing on the battery cathode material, when the battery is completely recycled and reused, the NMC111 battery results in the lowest GHG emissions and the NMC811 battery results in the lowest resource consumption. Based on these results, a BSS system should perform battery recycling and LIB reuse, and select small-capacity NMC batteries.