Replacing an EV battery is cheaper than repairing a gasoline engine
Replacing an EV battery is cheaper than repairing a gasoline engine
Many users are hesitant to use EVs due to the high cost of replacing an electric vehicle (EV) battery. Usually, after 8-10 years of use, the battery needs to be replaced, which can cost about the same as the price of the vehicle. This is why many consumers are satisfied with fuel-powered vehicles, despite their desires.
Recurrent, a startup that provides EV and battery data, recently published a report showing that replacing an EV battery is cheaper than repairing a fuel-powered vehicle engine. The report claims that after 2030, the cost of batteries will be lower than repairing engines.
“The price of metals such as lithium and cobalt is falling due to green inflation during the period 2020 to 2023, which has reduced the cost of batteries by almost 40 percent,” the report reads.
That is, the startup made this prediction after analyzing the situation where the price of battery packs suitable for EVs is falling and the maintenance cost of gasoline vehicles is increasing. According to Recurrent, replacing a battery in 2020 would cost $15,000 (about Rs. 2 million). This is the same price as the valuation of a vehicle that was already in use at that time.
If this trend continues, by 2030 the cost of replacing a battery will be limited to only 30 percent of the value of a vehicle with a valuation of $15,000.
According to the US Department of Energy, the cost of current EV batteries has decreased by 90 percent compared to 2008. Studies by Goldman Sachs and the Rocky Mountain Institute have also presented solid data in this regard.
The Goldman Sachs report estimates that the price of EV batteries per kilowatt hour will reach $64 by 2030, while according to the Rocky Mountain Institute, this price will be between $45 and $65.
In this context, CATL began offering LFP cells at $56 per kilowatt-hour in 2024, followed by BYD. Meanwhile, Clean Energy Associates predicts that the global supply of lithium-ion batteries will be oversupplied by 2028, indicating that battery prices will continue to fall.
Rapid technological improvements and cost reductions are making it easier for consumers to adopt electric vehicles. It is believed that replacing an EV battery will be cheaper and more environmentally friendly than repairing a gasoline engine, which will further boost the electric vehicle market.
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