By 2030, replacing an EV battery may cost less than repairing an ICE engine, according to Recurrent, which analyses battery health for used EVs.
Falling battery prices are driving this trend. Battery replacement, equivalent to the full value of a used car in 2020, now costs around 75%. By the decade’s end, it’s expected to drop to just 30%.
This shift is fuelled by declining EV battery costs, with Goldman Sachs predicting prices will hit around £65 per kWh by 2026 – almost 50% lower than 2023 levels. Raw material costs caused a spike in 2022, but prices have generally fallen since 2008, with the US Department of Energy estimating a 90% decline over that period.