EV battery replacements: How often and how much?

Author

Colin Velez
June 27, 2024

While still a rare occurrence, some electric vehicle drivers will one day be faced with the task of replacing their battery, an operation that can cost tens of thousands of dollars. However, trends in battery replacement costs are moving in an encouraging direction.

What this means: While many car drivers go electric because of the perceived cost-savings of ditching fuel, battery-powered cars, especially used models, come with their own set of upkeep expenses. The cheaper replacements and repairs become, however, the less friction buyers will face, improving satisfaction with EVs.

Trends in EV battery costs

  • According to Recurrent, a typical EV battery costs anywhere from $6,000 to $20,000 to replace, a substantial fee regardless of where one might land on the spectrum.

  • However, most EV drivers, especially owners of newer cars, are unlikely to need a replacement. Only 2.5% of Recurrent’s study sample have had to pay for a new battery, the majority of which drove earlier generation models. As time goes on, that number may shrink even further as battery technology improves.

  • The overall cost of replacing an EV battery has also trended steadily downward. In 2019 the rough cost of replacement for a 100 kWh battery pack, including labor, was around $16,100, 16% lower than in 2007. Should the rate of decline hold steady, then the cost by 2025 will be $5,600.

Taking a step back: Further price declines aren’t guaranteed, however. The cost of lithium, one of the more expensive materials used in EV batteries, has fallen since the start of the year but jumped during 2021 and 2022 due to shortages and supply chain disruptions.

Bottom line: Even though most electric car owners won’t have to worry about replacing their battery, it is a valid concern for used EV buyers. Having upfront discussions about the cost and the encouraging trends seen in replacement fees can help soothe shopper anxiety.

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