EV battery soon cheaper to replace than ICE engine – report says

Car research firm Recurrent’s new report says EV battery replacement will cost less than replacing an internal combustion engine (ICE) by 2030.

GM Authority says this is based on estimates pointing to lower costs for battery metals, cheaper chemistries such as lithium iron phosphate (LFP), higher energy density packs, and recycling and reuse of mined materials.

Recurrent gives a range of predictions for EV battery pack costs in 2030 and uses RMI (Rocky Mountain Institute) data, adding battery pack prices are falling due to advancing technology.

It says; “This puts pack prices at or under (US)$50/kWh. For a huge 100kWh pack, replacement costs might be (US)$4500-$5000, or (US)$3375 for a more standard 75kWh pack. That’s on par with an engine replacement.”

The study suggests EV owners will eventually be able to sell the old battery pack in their vehicle and replace it with a new one, extending the life of the car.

Recurrent reckons change is coming soon with a growing market for second-life batteries such as energy storage or backup power, while also forecasting future EV owners will buy a cheap, used EV and replace the battery “for a few thousand dollars”.

It expects price parity between new EVs and similar ICE vehicles will happen from next year.

In New Zealand, several firms such as EVs Enhanced and Blue Cars have been working on EV battery replacement for years.