A new study by Canadian telematics company Geotab suggests that modern EV batteries can last up to 20 years, outliving the vehicles they power. This breakthrough highlights not only the durability of EV batteries but also the potential for substantial cost savings and environmental benefits over the vehicle’s life.
Five years ago, Geotab’s 2019 analysis reported that EV batteries degraded at an average rate of 2.3 per cent per year. At the time, this rate was seen as promising. However, the latest data, incorporating fleet data from over 10,000 EVs, shows a remarkable improvement, with degradation rates now averaging just 1.8 per cent per year.
“In 2024, we performed a new analysis and the results indicate that EV batteries have improved significantly,” stated Geotab in their study. This improvement means that EV batteries could potentially last up to 20 years, far beyond the average vehicle lifespan, provided that drivers adhere to recommended charging and driving practices.
The primary concern for fleet operators and management has been the high cost and unknown longevity of EV batteries. However, with the latest findings, the financial benefits of switching to EVs are becoming clearer. Geotab’s study indicates that an EV could save about $15,900 per vehicle over its lifetime, making a strong case for the adoption of electric fleets.
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Fleets are under increasing pressure from regulators, investors, and environmental organizations to reduce CO2 emissions. Switching to EVs is one of the most effective strategies to achieve this. Yet, despite the performance gains, there remains a hesitation to replace light, medium, and heavy-duty internal combustion engine (ICE) vehicles with EVs. Geotab’s data could be the convincing factor needed for fleet operators to make this crucial transition.
Battery degradation is a natural process that reduces a battery’s capacity to store energy or provide power. Interestingly, EV batteries typically have a higher capacity to produce electricity than the vehicle’s powertrain can utilize. This means power degradation is rarely noticeable; instead, the main concern is the loss of energy storage capacity.
The state of health (SOH) of an EV battery is a measure of its condition, starting at 100 per cent and decreasing over time. For instance, a 60 kWh battery with 90 per cent SOH would function similarly to a 54 kWh battery. Geotab’s study emphasizes that battery degradation is mostly linear but varies with factors such as climate, usage, and charging methods.
Hot climates and frequent use of direct current fast charging (DCFC) can accelerate battery degradation. Liquid-cooled battery systems, like those in Tesla models, perform better than air-cooled systems, such as in the Nissan Leaf. Additionally, batteries charged with Level 2 chargers degrade more slowly than those frequently charged with DCFC.
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Most EV batteries are expected to retain over 80 per cent of their health after 12 years, far surpassing the typical vehicle lifespan. This durability is a crucial selling point for both individual consumers and fleet operators considering the switch to electric.
Geotab’s findings have far-reaching implications for the future of transportation. The ability of EV batteries to last beyond the vehicle’s life not only makes EVs a more attractive financial investment but also supports global sustainability goals by reducing waste and the need for frequent battery replacements.
“As the world moves forward with electric vehicle adoption, advancements in battery technology are crucial. Our latest study gives fleets the confidence to replace ICE vehicles with EVs, knowing they are making a cost-effective and environmentally friendly choice,” concluded Geotab’s report.
This new data dispels myths about the reliability and longevity of EV batteries. The significant reduction in battery degradation rates over the past five years underscores the rapid advancements in EV technology. As regulatory bodies like the European Union push for sustainability through battery durability regulations and carbon footprint statements, the transition to electric vehicles is becoming not just a viable option but a necessary one for a sustainable future.
