Electric vehicles are becoming more affordable each year, with purchase prices now nearing those of gas-powered cars, as reported by the Washington Post.
However, the debate between EVs and internal combustion engine vehicles continues to heat up, especially on platforms such as Reddit, where users compare the total cost of ownership for both types of vehicles over time. In these rough calculations, EVs often come out as the cheaper choice. But one sticking point for potential EV buyers remains the cost of replacing the battery.
A recent study suggests that fewer than 13% of vehicles from 2015 and before had undergone battery replacements. This figure went down to under 1% for cars from 2016 and above. This raises the question: Are electric vehicles truly the better deal when you factor in the cost of a replacement battery? We spoke to a battery expert to get insight on how much it costs to replace an EV battery and whether EVs or ICE cars offer the best long-term value.
How much does it cost to replace an EV’s battery?
A new EV battery can cost between $10,000 and $20,000 depending on the make and model, said Nadim Maluf, CEO and one of the founders of Qnovo, a company that develops software to optimize battery performance.
“The cost to replace an EV battery is not cheap,” Maluf said. “But that doesn’t mean you have this big expense coming down the pike.” In fact, he said, the possibility of replacing the battery doesn’t necessarily result in a higher cost over the life of an electric vehicle. That’s because today’s battery packs last so long that you probably won’t need one, he said.
How long do EV batteries last?
Batteries don’t last forever, but large batteries tend to last longer than your typical cheap AAA.
“Batteries have improved a lot in the last decade, and they continue to improve,” Maluf said. Although most carmakers provide warranties of eight years or 100,000 miles for the batteries in their EVs, today’s technology means longer warranties of 150,000 miles or more are possible in the near future, he said.
With longer-lasting batteries as the industry standard, it’s becoming less likely an EV owner will own the car long enough to need a replacement battery. “I believe that the vast majority of consumers would get rid of their car before they’d need to change the battery,” Maluf said. “If you’re buying from a reputable carmaker, it’s highly unlikely that you’re going to need to change the battery, unless there’s a defect, but that’s a warranty issue.”
If the average car buyer keeps a vehicle for around 12 years — and drives it anywhere from 100,000 to 150,000 miles — there’s a good chance they’ll upgrade before running into battery issues. The average age of a car or light truck on US roads is 12.6 years, a report by S&P Global Mobility found earlier this year.
Plus, there are best practices for extending the life of an EV battery, such as minimizing the use of fast charging, keeping the battery between 20% and 80% charged, avoiding storing it empty, and minimizing exposure to high temperatures.
If you’re buying a used EV, the cost of replacing the battery does come into play more so than someone buying a new EV. But lower prices for preowned EVs versus new, coupled with incentives of up to $4,000 from the Inflation Reduction Act, add up to significant savings that can outweigh the cost of a replacement battery.
Battery replacement cost trends
The cost of EV batteries has gone down over time. Cost per kilowatt-hour for the lithium-ion battery packs that power EVs dropped significantly in recent years, from $1,355 per kilowatt-hour in 2008 to $153 per kilowatt-hour in 2022, according to the US Department of Energy. The advancements in battery technology and increase in production that have caused the cost of EV batteries to drop have helped bring down the overall price of electric vehicles.
In fact, Maluf said, industry shifts point to replacement batteries becoming a thing of the past. “I think the idea of replacing an EV battery is going to vanish over time. The trend going forward is what’s called cell-to-chassis, where the battery is put into the chassis on day one,” he said, comparing this development to Apple making replacement cell phone batteries obsolete with the iPhone.
“Five years from now, replacing the battery is going to be very tough, if not impossible. The carmakers are going to make the battery last so long that you don’t have to replace it,” Maluf said, noting that this shift toward longer lasting, safer and more reliable EV batteries is already in progress.
Factors that go into battery replacement costs
These are some of the factors beyond manufacturing costs that contribute to the price of a replacement EV battery.
Make
EVs from different makers will each come with their own battery replacement costs. Estimates to replace the battery in older Nissan Leafs that are out of warranty range between $5,500 and $7,500, while replacement batteries for Teslas start at $13,000.
Model
Battery replacement costs can vary between models. Here’s a look at the battery replacement costs of three different Teslas.
|
Tesla |
Battery replacement cost (including labor) |
Warranty |
|
Model S |
8 years or 150,000 miles |
|
|
Model X premium SUV |
8 years or 150,000 miles |
|
|
Model 3 sedan |
8 years or 100,000 miles 8 years or 120,000 miles for Model 3 Long Range |
Battery size
The size of an EV battery is one of the biggest factors in the cost to replace it. For instance, Hyundai’s Kona Electric crossover is available with a 48.6 kilowatt-hour battery that has a range of around 200 miles, or with a larger 64.8 kilowatt-hour battery that has a range of 260 miles.
An EV like the Ford F-150 Lightning Extended Range, on the other hand, has a 141 kilowatt-hour battery that will take this much larger truck about 320 miles. The more powerful, long-range battery for a larger vehicle will cost considerably more to replace than the battery for a smaller EV.
Labor costs
Replacing an EV battery is a difficult and highly technical job, not the kind of thing your average neighborhood auto mechanic can handle.
“You’ll need to take it to the carmaker for safety reasons, integration, complexity, the right assembly, the right software,” Maluf said.
Battery recycling
EV makers must factor the cost of disposing old EV batteries into the cost of new ones. Recycling EV batteries can be a complicated and expensive process, adding to the overall replacement cost for car owners.
“EV batteries are still relatively new, but many of the old batteries from the Nissan Leaf went to landfills, resale or shredding for potential recycling,” Maluf said. “It’s still a small volume today but will become a bigger problem as EVs begin to reach the end of their lives.”
Margins
On top of all those costs, the manufacturer and dealer need to make a profit on the EV battery and services they provide, increasing the cost of a replacement.
The bottom line: Is getting an EV still worth it?
When you factor in the replacement battery cost for an EV, is going electric more cost-effective than buying a gas-powered car?
Those Reddit users who estimated that the lifetime cost of an EV is likely to be less than that of an ICE vehicle are right. And of course the increasingly unlikely possibility that you’ll need to replace the battery doesn’t change that estimate.
The cost of ownership over the life of any car consists of the initial purchase price, the cost to fuel it, and the cost of maintenance. As price parity for EVs and ICE vehicles has increased, acquisition cost has become less of a factor. The cost to fuel a vehicle with gas is generally more expensive than charging an EV, though prices per gallon of gas and per kilowatt-hour of electricity vary from state to state and change over time.
That leaves maintenance, which, even with the potential cost of a replacement EV battery, is typically more expensive for an ICE vehicle. Overall, battery-powered cars require less maintenance than ICE cars, according to the US Department of Energy. Unlike gas-powered cars, EVs don’t need oil changes, and there’s much less wear and tear on their brakes, according to the agency.
For Maluf, the answer to whether EVs are still worth it is clear. “Absolutely,” he said. “Especially today, when there are so many incentives to buy an EV.”
FAQ
Will my car insurance cover the cost of an EV battery?
Many traditional car insurance policies don’t cover the cost to replace an EV battery, though some insurers might offer EV-focused policies that do. EV insurance policies can cost up to 20 percent more than insurance for gas-powered vehicles, but some major insurers offer discounts specific to EV drivers.
Will my EV battery be covered by my warranty?
EV battery warranties are typically separate from your EV’s bumper-to-bumper warranty, but the details of that coverage vary by manufacturer. Some manufacturers require an EV battery to fail completely before they’ll replace it, while others will cover the replacement during the warranty period if the battery’s capacity falls below a certain percentage.
What is the lifespan of an EV battery?
Modern EV batteries can last 15 to 20 years and delivering about 200,000 miles of driving. These figures are also dependent on driving styles, ambient weather, and charging habits.
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