It can be a costly thing to replace the battery on an electric car, but how costly?
The following are insights into how much you’ll spend on an EV battery.
Here’s how much a new electric car battery costs
EV batteries costs between $2500 and $50000, depending on the brand, capacity, and technology used. Replacing the battery will cost between $0 and $20000, depending on the vehicle’s warranty. The average cost of an electric car battery is between 30% and 57% of the vehicle’s total value.
Let’s look at a few examples.
As you can see, the price varies a lot across models and car types.
Why Are Electric Car Batteries So Expensive?
EV batteries are relatively expensive to produce, increasing their eventual price. Various elements make up an excellent electric car battery, including:
- and housing.
Cathodes assume more than 51% of the cost of producing these EV batteries. You can attribute this to the costly materials used in the production process, including manganese, cobalt, and lithium.
These minerals are rare yet in high demand.
Cathodes determine the performance of your EV battery.
An excellently built and reliable device will likely assure you of enhanced thermal safety, range, and reliability. Yet, this requires enhanced investment in:
- lithium iron phosphate,
- lithium nickel manganese cobalt,
- and lithium nickel cobalt aluminum oxide.
Besides acquisition, there are EV battery maintenance and depreciation costs.
Batteries lose the ability to hold their charge for an extended period over time. In such instances, you’ll have to replace the battery, adding to the initial acquisition cost.
Top EV Batteries And How Much They Cost
Different brands charge different amounts for their EV batteries.
Here is a breakdown of the top considerations and how much they charge.
|Maker||Cell Supplier||Approx Cost|
|Tesla||CALT, LG Energy, Panasonic||$10000 to $25000|
|Volvo||LG Energy||Below $48000|
|BYD||BYD||$24 to $1800 per cell|
|BMW, Stellantis, VW||Samsung SDI||$2500 to $20000|
|Toyota||Panasonic||$2500 to $45000|
|Nissan||AESC||$6500 to $20000|
|VW Group||LG Energy, CATL, Gotion High-Tech||$5000 to over $10000|
|Hyundai||SK Innovation||$2850 to $50000|
|Chery Automobile||Gotion High-Tech||$9000|
How Much of The Total Price Is The Battery Expensive?
Electric vehicles rely on EV batteries to run, as they are the singular source of power.
The average cost of an electric car battery is between 30% and 57% of the vehicle’s total value. The more expensive car batteries are found in the bigger EVs with a very good range.
However, this figure will likely go down in the next few years, thanks to improved technologies.
However, some car brands have invested in advanced technologies that have helped minimize production costs. These technologies have helped reduce time wastage and improve efficiency, guaranteeing seamless production.
Eventually, the price will likely go down.
Recently, Tesla produced a powerful EV battery that can last significantly longer. This battery costs over $25000, which is much higher than some vehicle models. Investing in such a battery guarantees unrivaled returns in the long run.
Do Electric Car Batteries Cost More Than The Car?
Most EV car batteries today cost less than the actual value of your vehicle. Depending on the brand, model, and battery efficiency, they will take between 30 and 50% of the total value.
In rare cases, the battery cost could exceed the EV car’s price by up to 7%, which is slightly manageable.
Various elements determine how much an EV battery will cost. Usually, the manufacturing process, including depreciation, will consume approximately 24% of the budget, seconding the cost of cathodes.
While anodes will take 12% of the cost, the separator shall consume 7% of the budget. On the other hand, the price of electrolytes and housing materials will be 4% and 3%.
Usually, an increase in demand spikes the cost of EV batteries.
Suppose there are insufficient materials to make reliable EV batteries. In that case, the price of the battery will rise by approximately 22%.
Are Batteries for Electric Cars Getting Cheaper?
Various statistics show that the cost of producing EV batteries is slowly reducing.
Most analysts project that the cost of manufacturing EV batteries will be approximately 19% by 2030, down from over 50% in 2015.
That said, we are starting to see a good fleet of new affordable electric cars with better range.
You can attribute the change to multiple elements, including access to materials, enhanced efficiency, and advanced technologies.
Most manufacturers are embracing technologies that can help significantly reduce the cost of production. For instance, there has been a significant change in cathode manufacturing, embracing solid-state batteries.
This option is more effective, affordable, and sustainable.
Different types of EV batteries have emerged, thanks to advanced technologies. Today, you have multiple choices, including:
- and metal-air batteries.
Each option relies on distinct technologies, meaning you get different efficiency levels.
While lithium-ion batteries are king today, these other options are slowly reshaping the EV battery market. An increase in choices will likely reduce the price in the long run.
Will Increased Demand for Electric Cars Drive Battery Prices Down?
An increase in the demand for electric vehicles will likely contribute to a decrease in EV battery costs. Still, there are reasons why vehicles from brands like Tesla get more expensive.
Producing multiple units will help improve the economies of scale, implying that it will be less expensive to make numerous EV batteries than fewer options.
Manufacturers are also considering other options to help reduce this cost. Here is a breakdown of the different options in play.
Various governments are offering incentives to help reduce the cost of electric vehicles and EV batteries. Reduced taxes on the items used in this process will help reduce the financial burden on the final consumer.
In addition, it encourages the demand for electric vehicles, boosting economies of scale.
Research and Development
The first step toward reducing the cost of EV batteries is understanding how to boost production efficiency.
Investing in research and development will make developing a powerful EV battery easier without eating too much into the budget.
Enhanced research will expand technologies and knowledge, significantly reducing the time, materials, and resources spent on EV battery production.
Electric vehicles are relatively new to the market, and meaningful standardization is yet to suffice.
Developing batteries that can comfortably meet the needs and preferences of multiple car manufacturers will significantly reduce the eventual cost. In addition, standardization can boost or scale up production.
Embrace Ancillary Industries
With multiple ancillary industries available, it becomes easier to reduce the overall cost of producing EV batteries.
The idea is to boost seamlessness in the production process, including integration and supply chain management.
Incentivize Reverse Logistics
Offering incentives to companies that provide reverse logistic services will help reduce the cost of electric vehicle battery production. Reverse logistic services include recycling and retrieving critical materials from old EV batteries.
Using the components from these old batteries will help improve:
- energy efficiency,
- reduce production time, and boost sustainability.
Will the Scarcity of Metals Used In Car Batteries Drive Prices Up?
An increase in the demand for metals and minerals used in EV battery production will likely increase the production costs.
Cobalt and nickel are among the top materials used to produce batteries. These metals have become scarce, raising their prices. This trend will likely continue until the market stabilizes. The demand for other raw materials will also affect the eventual pricing.
Graphite is yet another mineral necessary for producing batteries. It is used to make the negative end of lithium-ion batteries, meaning manufacturers must have it.
Unfortunately, its scarcity keeps surging.
Thanks to the increased calls for sustainability, most people are gradually shifting to electric vehicles. This change has contributed to the high demand for the raw materials used to make cars and batteries, including EV batteries.
On the other hand, the requisite minerals and materials supply has significantly dipped, forcing car battery manufacturers to fight for the few available in the market.
Recently, there has been a push for manufacturing batteries without nickel or cobalt.
Producing such batteries will help mitigate the rising costs of car batteries. While such batteries exist, making them for commercial use will likely take more than a decade.
However, they will help limit the industry’s vulnerability to future supply shocks.
How Much Does It Cost to Have a New Battery Installed?
Installing a new battery in your vehicle will cost between $45 and $250.
This amount does not include the acquisition cost, which could be $50 to $200 for a regular battery and $2500 to $20000 for an EV battery.
The installation cost varies with:
- the power,
- and labor costs.
A powerful and unique battery will likely cost you a higher figure. Bigger batteries might also be challenging to install, exposing you to higher installation expenses.
Labor costs will vary with the type of battery, location, and brand. Some brands require specialized knowledge to install, meaning some will be costlier than others.
The location of the car dealership or mechanic will determine how much you pay.
Individuals in high-end neighborhoods will likely charge a premium to cover their overheads.
Suppose you understand how to install a battery. In that case, you can minimize the installation costs to almost zero. A DIY move allows you to save a significant amount. Yet, it does not guarantee quality results. For this reason, you can only consider it if you are sure about your skills.
EV batteries will likely be much more affordable in the future.
These changes in technology will help achieve this goal:
- production methods,
- economies of scale,
- and demand.