Report: Electric Vehicle Battery Replacement to Cost Less Than Engine Repair by 2030
Green Car Reports shares that electric vehicle battery replacements may soon cost less than repairing the engine of a gas-powered car, predicts battery-analysis firm Recurrent.
Recurrent credits this prediction to the continued decrease in EV battery pack prices. While in 2020, battery replacement costs represented 100% of the value of a $15,000 used car, it’s since dropped to make up just 75% of its used value.
By 2030, the cost to replace a battery will be just 30% of the value of a $15,000 used vehicle, according to Recurrent.
EV battery prices are not just starting to decrease, though, but have been on a steady decline. According to the U.S. Department of Energy, EV battery costs are currently 90% lower than what they were in 2008.
Recurrent’s research comes shortly after a Goldman Sachs study from earlier this year which estimated that a decline in EV battery prices will lead to a spike in adoption.
If trends continue, by 2030, Recurrent expects there to be a burgeoning market for used EV batteries. A potential growing use of second-life applications, such as stationary energy storage, would also allow EV owners more room to negotiate when selling used battery packs.
