Battery Capacity of Electric Vehicles Maintains Over 80% Even After 200,000 KM: A Look at How Residual Value Changes throughout Life Phases

In the world of electric vehicles (EVs), concerns about battery degradation and its potential impact on the economic viability of used EVs have been a topic of discussion. However, recent studies and advancements in technology are challenging these assumptions and painting a more optimistic picture.

The P3 Group's study, for instance, reveals a surprising finding: most EV batteries retain more than 80% of their capacity even after 200,000 kilometres. This is significantly higher than earlier, more pessimistic laboratory estimates about battery capacity loss over time.

As EV batteries age, they go through three key phases: End-of-warranty (EoW), End-of-first-life (EoFL), and End-of-second-life (EoSL). By the end-of-warranty phase, most batteries still retain at least 80% of their original capacity.

Beyond their first lifecycle, EV batteries retain substantial value. They can be repurposed for secondary uses like stationary energy storage systems, extending their economic viability. Batteries that no longer meet drivers' expectations at the end-of-first-life can often be repurposed for such applications.

At the end-of-second-life, the battery's capacity and safety levels make it unsuitable for further use, but it remains valuable for its recyclable materials, such as lithium and nickel. Essential materials like these can be recovered and reused, supporting the circular economy.

Technological advances in cell chemistry, thermal management, and battery management systems have significantly improved battery durability. These advancements, coupled with a maturing recycling ecosystem, make the future of EV batteries look brighter than ever.

Manufacturers' confidence in battery technology is also reflected in increasingly robust warranty terms. While the automobile brand currently offering the longest battery warranty for electric vehicles, up to 1,000,000 kilometers, is not explicitly named in the provided search results, typical guarantees from most manufacturers range up to 8-10 years or around 160,000 kilometers. Some studies suggest that battery life can exceed 300,000 kilometers in practice.

The findings of the P3 Group's study offer a clear, data-driven perspective that challenges the widespread scepticism about the longevity of EV batteries. With concerns about an ageing battery making used EVs economically unviable due to reduced range being less of a concern, the future of electric vehicles looks promising, both economically and environmentally.

Battery Capacity of Electric Vehicles Maintains Over 80% Even After 200,000 KM: A Look at How Residual Value Changes throughout Life Phases