The Hidden Cost of EVs: Battery Failures Risk Closing Automakers

Written by Kathrine Frich

Dec.03 - 2024 3:02 PM CET

Autos
Photo: Pixabay
Photo: Pixabay
Replacing a single high-voltage battery can cost up to $14,500.

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The rise of electric vehicles is reshaping how we think about transportation.

Cleaner, quieter, and innovative, EVs promise a better future. But behind the optimism, automakers face growing pains, especially when it comes to battery technology.

The costs and complications of managing faulty batteries are becoming a pressing challenge for the industry.

The Cost of Battery Recalls

Battery failures in electric vehicles are not uncommon. According to a report from consultancy KBC, between 0.5 and 1 percent of EVs experience battery defects. While the percentage seems small, the financial impact is significant.

Replacing a single high-voltage battery can cost up to $14,500. For large-scale recalls — 150,000 cars, for example — material costs alone could skyrocket into billions.

These estimates don’t even include labor, logistics, and recycling expenses, which add substantially to the overall cost.

Real-World Examples

Major automakers have already faced the reality of costly recalls. General Motors had to recall its Chevrolet Bolt due to battery fire risks, while Jaguar found itself repurchasing I-Pace models after persistent issues.

Felix Feuerbach, a senior partner at KBC, warns of the broader implications. “These recalls could reach a scale where they threaten the financial stability of automakers,” he noted.

The complexity of EV batteries makes recalls especially challenging. Batteries are often deeply integrated into the car's structure, which complicates replacements.

In some cases, individual battery modules can be replaced, but this process often requires breaking seals that protect against moisture and dirt, risking further damage.

As EV production accelerates, so does the potential for recalls. With electric vehicles becoming a cornerstone of the industry, these issues can no longer be overlooked.

Automakers must address these challenges head-on. Designing batteries that are easier to repair, improving quality control, and investing in better manufacturing processes are critical steps.