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Report states EV battery replacements will cost less than fixing a gas engine by 2030

EV battery replacement is notoriously expensive, but that might no longer be true. (Image source: EVSE AU)
EV battery replacement is notoriously expensive, but that might no longer be true. (Image source: EVSE AU)
EV batteries are undoubtedly brutally expensive to replace, making it a true hindrance for the pre-owned market where battery replacements might be necessary. According to a recent report, however, that may soon change, with prices dropping rapidly throughout the rest of the decade.

It is somewhat well-known that replacing an EV battery is quite an expensive affair, and this fact has been weaponized extensively by EV naysayers to assert ICE superiority, at least in terms of maintenance. Yet, it is is untrue to state that modern EVs will ever require a battery replacement, considering that most EVs will likely outlast their batteries. With that out of the equation, EVs are undoubtedly far more economical to maintain than their gas-guzzling counterparts.

That said, it is no surprise that circumstances may arise where a battery replacement might be necessary. Even then, the future of EVs appears to be a positive one, if a recent report by Recurrent is to be believed. According to the report, EV battery replacement costs are expected to undercut ICE repair expenses by 2030.

Recurrent, drawing from Goldman Sachs projections, states that prices for EV batteries have been tumbling rapidly, and have been estimated to reach $80 per kWh by the end of 2026, which is half their price in 2023. According to multiple analysts and industry experts, it is not inconceivable for battery pack prices to drop as low as $50 per kWh by the end of the decade. The drop in prices can be attributed to a plethora of factors, including descending commodity costs, cheaper chemistries, etc.

Should these forecasts play out in real life, it will be an absolute boon for EV adoption, especially in the pre-owned market. EVs have been known to last as much as 200,000 miles, cheaper battery replacements will only bolster this number and EV reliability as a whole.

EV battery prices have been on the decline. (Image source: Recurrent)
EV battery prices have been on the decline. (Image source: Recurrent)

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> Expert Reviews and News on Laptops, Smartphones and Tech Innovations > News > News Archive > Newsarchive 2024 12 > Report states EV battery replacements will cost less than fixing a gas engine by 2030
Sambit Saha, 2024-12- 4 (Update: 2024-12- 4)