EV Battery Replacement To Be Cheaper Than Gas Engine Repairs By 2030

EV Battery Costs Are Dropping

[{"selector":"#anim-29f624b3-385e-46ff-b29f-61f4e34814f7","keyframes":{"opacity":[0,1]},"delay":250,"duration":1500,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-08d093ba-c85a-4776-8837-cb418224fbf7","keyframes":{"transform":["scale(1)","scale(1.5)","scale(0.95)","scale(1)"],"offset":[0,0.33,0.66,1]},"delay":0,"duration":1450,"easing":"ease-in-out","fill":"both","iterations":1}] [{"selector":"#anim-3605fc9a-5b62-4b8a-9587-2e1d8aaaa2ae [data-leaf-element=\"true\"]","keyframes":{"transform":["translate(-3.552713678800501e-15%, 0%) scale(1.5)","translate(0%, 0%) scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"forwards"}] A new study shows that by 2030, replacing an electric vehicle (EV) battery will be cheaper than repairing a traditional gas engine, challenging the myth that EVs are too expensive to maintain. 1

Battery Prices to Drop Significantly

[{"selector":"#anim-12fa9e36-2d77-425b-8866-e306cd90cfde","keyframes":{"transform":["scale(1)","scale(1.5)","scale(0.95)","scale(1)"],"offset":[0,0.33,0.66,1]},"delay":0,"duration":1450,"easing":"ease-in-out","fill":"both","iterations":1}] [{"selector":"#anim-6f79ccb8-c8c2-448e-89fc-0f6026a2c7a3","keyframes":{"opacity":[0,1]},"delay":250,"duration":1500,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-1c4f840e-ff0c-4ea8-9d5e-1e2f1a0b91cb [data-leaf-element=\"true\"]","keyframes":{"transform":["translate(-3.552713678800501e-15%, 0%) scale(1.5)","translate(0%, 0%) scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"forwards"}] Research predicts that by 2026, EV battery prices will fall to $80 per kWh, about half of the 2023 cost. By 2030, some estimates suggest they could drop as low as $32 per kWh. 2

More Affordable EV Ownership

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Factors Driving Cost Reduction

[{"selector":"#anim-76b41107-3220-4c7a-9e85-17d84714000e","keyframes":{"opacity":[0,1]},"delay":250,"duration":1500,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] Advances in battery chemistry, recycling of materials, and falling commodity costs (especially for lithium and cobalt) are all contributing to the decrease in battery prices. 4

Growth of Second-Life Batteries

[{"selector":"#anim-995c244f-90ce-4cd1-a23b-c827217ed21f","keyframes":{"opacity":[0,1]},"delay":250,"duration":1500,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] As battery prices drop, the market for second-life batteries is growing. Consumers might even sell their old batteries to reduce replacement costs by up to $20 per kWh, further making EV ownership more affordable. 5

As we approach the end of the decade, the fear of expensive battery replacements should no longer scare off potential EV owners. Modern batteries are lasting longer than expected, and replacement costs are becoming more manageable.