EV Battery Life: New Data Challenges Long-Held Concerns

Concerns over EV battery longevity have long been a barrier to adoption, with many potential buyers fearing rapid degradation and costly replacements. However, new data suggests that EV batteries last much longer than expected, easing concerns about long-term reliability.

Battery Longevity: What the Data Shows

A June 2024 McKinsey Mobility survey found that 29% of respondents worldwide, including Australians, cited range anxiety as a key reason for not switching to an EV. In addition to range concerns, buyers worry about the high cost of battery replacements.

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However, research conducted by Pickles Auction House suggests that these fears may be overstated. After testing 250 EVs from brands like Tesla, Hyundai, Kia, BYD, Polestar, MG, and Audi, the results revealed that:

• EVs over four years with over 120,000km retained more than 93% of battery capacity.
• EVs under two years old with less than 20,000km maintained 97–98% of capacity.
• Models between two and four years old with 20,000km–80,000km showed only minor degradation, holding 94–95% of their original capacity.

These findings align with a May 2024 study by US-based Recurrent Auto, which found that only 2.5% of EVs built after 2016 required battery replacements—a significant improvement over earlier models.

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What Car Makers Say About EV Battery Life?

Leading manufacturers and industry experts have confidently responded to the data in EV battery longevity.

David Smitherman, CEO of EVDirect (BYD’s Australian distributor), attributes the strong results to BYD’s in-house battery manufacturing and extensive R&D investment.

Ben Warren, Nissan’s National Manager for Electrification and Mobility, reinforced this sentiment, stating that most EV batteries should "well exceed the eight-year warranty" manufacturers offer.

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Despite these reassurances, battery degradation can still occur earlier than expected in some cases. Dickson Leow, General Manager at Infinitev, a Melbourne-based EV battery refurbishing company, notes that some batteries start failing around the six-year mark, even within warranty periods. Although these cases are few and far between and generally relate to older models (pre-2020) and certain chemistries.

The Rise of Vehicle-to-Grid (V2G) and Vehicle-to-Home (V2H) Technology

While battery health is improving, innovative uses for EV batteries are also gaining traction. V2G and V2H technologies allow EV owners to use car batteries as energy sources beyond driving.

• Vehicle-to-Grid (V2G) enables EVs to sell stored energy back to the grid during peak hours, potentially earning money.
• Vehicle-to-Home (V2H) allows EV owners to power their homes using their car’s battery, acting as a backup energy source.

A recent NRMA survey of 1,300 members found that 54% of EV owners would consider installing V2G technology in the future. Early adopters, like Francis Clarke, have already seen financial benefits. Clarke, trialling V2G through Amber Electric, reported earning $564 in two hours by selling stored energy back to the grid during a price surge.

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The Future of EV Battery Tech in Australia

Australia is slowly moving towards embracing bi-directional charging infrastructure. In May 2024, Mitsubishi became the first manufacturer to install V2G technology at its South Australian headquarters, though regulatory challenges remain.

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Mitsubishi CEO Shaun Westcott called for a national standard for bi-directional charging, arguing that red tape is slowing progress.

As EV technology continues to evolve, battery longevity concerns are becoming less of an issue. New innovations like V2G and V2H are adding more value to electric ownership. With manufacturers confident in their battery performance and warranties lasting up to eight years or more, the case for going electric is stronger than ever.