Used EV batteries could slash replacement costs, with a growing market offering 30-50% savings over new packs, potentially reshaping the electric vehicle industry.
Electric vehicle battery costs remain high
Replacing an electric vehicle battery can cost between €4,500 and more than €20,000, depending on the model and the type of battery. These costs are a major concern for drivers, especially as some older electric vehicles have batteries that are more expensive to replace than the car itself.A growing market for used batteries
Despite the high costs, a new market for used and second-life batteries is beginning to emerge. This market could offer more affordable alternatives to new batteries, potentially reducing the financial burden on vehicle owners.Replacement costs vary widely
The cost of replacing a full battery pack varies depending on several factors, including the battery's capacity in kilowatt-hours, its design, and the cost of labor. For most mainstream electric vehicles, the price ranges between €4,500 and €12,000, with some high-end models reaching up to €23,000.Alternative repair options exist
Some drivers are opting for less expensive alternatives, such as replacing only a defective module or reconditioning the entire battery. These options can cost between €1,000 and €4,000, which is significantly less than a full replacement.Warranty coverage and battery longevity
Most manufacturers provide a warranty covering the battery for 8 years or 160,000 km, ensuring at least 70% of the battery's capacity remains. In practice, many batteries retain more than 85% of their capacity after this period, making replacements less common than feared.The after-sales battery market is emerging
Felix Wagner, cited by Automotive News Europe, notes that the after-sales market for vehicle batteries is finally taking shape. However, the market is currently fragmented, with workshops handling different brands and models, which complicates their use in stationary storage applications.Future market potential
According to Felix Wagner, the after-sales market for electric vehicle batteries could be worth between $100 and $216 billion by the middle of the 2030s. This would represent a significant portion of the overall battery market, with the battery itself being the most dynamic component.Battery lifecycles and storage
Wagner describes three possible lifecycles for a battery pack: use in a vehicle, repurposing for stationary storage, and recycling. He estimates that 50 to 60% of used batteries go into stationary storage, 30% are recycled, and the rest enter the after-sales market.Surplus batteries and market dynamics
Some manufacturers have produced more batteries than needed, leading to large stockpiles. These surplus batteries degrade over time, even when not in use, creating a financial risk for manufacturers. Chinese companies are also increasing their production capacity faster than demand is growing.Independent market pressures prices
As the supply of used batteries grows, an independent market is forming, with dismantlers, specialized platforms, and independent garages offering used or reconditioned packs at a discount. This is expected to increase competition and drive down replacement costs for drivers over the next few years.
