Electric car batteries are one of the most expensive parts of EVs. However, almost all automakers offer extensive warranties for these parts in which EV battery, if found faulty, is replaced free of cost.
For example, Tesla and Nissan both offer a warranty for 100,000 miles or 8 years for their batteries whereas Kia and VW cover their batteries under some sort of warranty for 7 years.
This not only makes these parts highly dependable but also gives confidence to buyers.
EV Battery Prices Have Slashed Over The Years
The prices of electric batteries were slashed by almost 16% between 2007 and 2019. This has been possible because of the extensive R&D that has been put into this field.
Per Kilo Watt Hour Battery Cost In 2019
The research carried out by Mack Institute for Innovation Management at the Wharton School for Business in 2019 found that the per kWh cost of EV car battery replacement is around €152.7.
So, in case you are looking to replace a 100 kWh battery, the overall cost of replacement of just the battery would be €15,270 and that too before labour and taxes.
Future Predictions For Per kWh Battery Cost
However considering that the pricing of these batteries is rapidly reducing, it is expected that the per kWh cost of EV car battery replacement will come to €53.12 by 2025.
This will be a significant decrease and we anticipate that this will be the time when the mass adoption of EVs will take place.
How Is This Different From The Past Forecasts?
However, this EV car battery replacement cost is incomplete contradiction to what was predicted by the International Council on Clean Transportation (ICCT) in its 2019 report.
According to this report, the per kWh cost of EV batteries by 2025 was estimated to cost around €114 and €128.
However, as discussed above, the price is already expected to drop below half this value at the current rate of decline.
Total EV Batteries Cost
It is worth noting that the cost of replacing a battery is not just comprised of the part. Rather the labour cost also needs to be taken into account while going for such a replacement.
As experts in this field are relatively limited for now, they also charge huge sums of money for these replacement facilities.
For getting an idea of other allied costs, here is a great example:
- The Tesla Model 3’s battery costs €13,806 whereas the labour cost for replacement is an additional €2180.
Real Life EV Battery Cost
The real-life EV battery cost gives an idea of how much we should expect to pay for an EV battery.
- The Nissan Leaf’s 40 kWh battery costs around €5200 which turns out to be around €130 per kWh;
- The 16 kWh battery on the Chevrolet Volt has a price tag of around €3800. Thus the per kWh cost for this battery is €238;
- Chevrolet Bolt has a 66 kWh battery which costs approximately €15,178 and turns out to have a per kWh cost of €230;
- The batteries manufactured by Tesla cost around €118 per kWh.
This cost is less than the estimate presented by Mack Institute for Innovation Management at the Wharton School for Business in 2019.
Afterlife Of Batteries
As EVs are now being produced in abundance, the next major problem will be regarding their disposal.
This is why all EV battery manufacturers are now attempting to make as many of the battery components recyclable. This recycling will not just make these parts beneficial for reuse but will also aid in reducing global pollution.
Another purpose for which the EV batteries, after their retirement, are now being used is for powering the local utility company’s electric grid.
This means that even when an EV battery has been removed from the vehicle, it remains useful for several years before making its way to recycling.
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