Politically, electric cars have definitely become big business. But it is also extremely expensive for the car brands when the batteries have problems, a new report shows.
A new report from the consulting firm KBC indicates that battery problems in electric cars impose billions of dollars on car brands.
The problems relate in particular to recalls, where defective batteries must be replaced in many cases. The central role of the battery in the construction of the electric car and their price level make these recalls particularly expensive.
According to the report, up to 0.5 to 1 percent of all electric cars are affected by battery failure with the current battery technology.
This failure rate can lead to significant expenses, when a high-voltage battery typically costs around DKK 104,000. For example, the replacement of batteries in 150,000 electric cars will result in material costs in the billions – without including labor, installation and recycling costs.
Recalls are a growing problem for car manufacturers. General Motors, for example, has had several extensive recalls of their Chevrolet Bolt due to battery problems.
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Jaguar has also had to buy back I-Pace models as a result of persistent battery failure. Felix Feuerbach, senior partner at KBC, points out that costs can reach levels that threaten the financial stability of car manufacturers:
– Then battery recalls can potentially reach proportions that threaten the company's existence.
Another factor that aggravates the situation is the design of the batteries. They are often built as an integral part of the car's structure, which makes them difficult to replace.
In some cases, it is possible to replace individual modules, but this often requires breaking the seal, which protects against moisture and dirt. This increases the risk of further complications.
The report emphasizes that battery problems are not only a technical challenge, but also an economic dilemma for the automotive industry, which is in the middle of a transition to electric vehicles. With increasing production of electric cars, such problems can have far-reaching consequences for both the factories and their customers.
