Not only are range and charging questions on people’s minds when buying an electric car, but the cost of replacing the battery when it goes bad also adds to the concern. The battery is one of the most expensive parts of an EV. However, continuous improvements in battery technology and mass production are opening new ways to reduce its cost.

What changed in battery manufacturing technology?

Battery companies are now working on better cell chemistry, new designs and simpler manufacturing methods. This can help store more energy in less material and reduce wastage during production. New battery packs may also reduce the need for some additional parts, making their design easier.

This can be understood from the smartphone technology. Over time, phone processors, cameras and batteries have improved. Additionally, mass production made many old components cheaper to manufacture. The EV battery industry is witnessing a similar shift.

Benefit from higher production and new chemistry

When companies manufacture a large number of battery cells, factory capacity is better utilized. Suppliers are also able to operate on a larger scale and the cost of production is spread over more units. On the other hand, increased competition among companies also creates pressure to reduce costs.

Changes in battery chemistry are also important. Lithium Iron Phosphate i.e. LFP battery is an example. This could prove to be a relatively low-cost option in many EVs. However, this battery is not suitable for every vehicle. Companies choose different technologies considering range, performance, cost and durability.

Will it be cheaper to replace an old EV’s battery?

A reduction in battery manufacturing costs may increase the likelihood of cheaper replacement packs in the future. But this does not mean that the cost of replacing every electric car battery will automatically decrease. The new battery must match the car’s software, electrical system, size and safety requirements.

Additionally, the entire battery pack does not need to be replaced for every problem. If the defect is limited to a specific cell or section, repair is possible in some cases. Better service networks and repair technology could give EV owners more options in the future.

Why is battery manufacturing important in India?

Government schemes are also working to increase the domestic capacity of battery manufacturing in India. The PLI scheme to promote the production of advanced chemistry cells is a step in this direction. Expanding local supply chains and battery recycling can also help in the long run.

However, changes in raw material prices, reliance on imports and supply chains can affect battery costs. Therefore, there is no guarantee that the replacement cost of each model will decrease.

Before Diwali, there will be a big bang in the car market, these two companies will launch a great SUV