Impact of Battery Degradation
- Loss of Range: Over time, EV batteries degrade, which reduces their capacity to store energy. This results in a decrease in the vehicle’s driving range. For instance, an EV with an initial range of 300 miles might only be able to travel 250 miles after several years. This reduction in range significantly affects the vehicle’s resale value, as buyers often prefer newer models with longer ranges.
- Concerns Over Battery Replacement: The cost of replacing an EV battery is high, which can deter buyers from purchasing used EVs. Even though most manufacturers offer warranties on batteries (typically 8 years or up to 100,000 miles), the potential expense and hassle of dealing with a degraded battery drives down resale prices.
- Perceived Value: The market perceives older EVs with degraded batteries as less desirable compared to newer models, which often feature improved battery technologies and longer ranges. This perception contributes to faster depreciation for EVs compared to gasoline-powered vehicles.
Rate of Battery Degradation
While EV batteries generally last 15-20 years, they degrade at an average annual rate of about 1.8% under moderate conditions. This continuous degradation affects how consumers view the long-term value and reliability of EVs, further impacting their resale value.
In summary, battery degradation significantly influences EV depreciation by reducing range, increasing perceived maintenance costs, and affecting consumer confidence in the long-term value of the vehicle.
Original article by NenPower, If reposted, please credit the source: https://nenpower.com/blog/what-role-does-battery-degradation-play-in-ev-depreciation/
