For most electric vehicles, there is no way to fix or evaluate even somewhat damaged battery packs after incidents, forcing insurance companies to write off lorries with several miles, which raises premiums and reduces the benefits of switching to rechargeable.
And now, in some nations, those power packs are accumulating in scrapyards, creating an expensive and previously unidentified chasm in what was supposed to be a circular economy.
Were purchasing electric vehicles for environmental concerns, according to Matthew Avery, research director at Thatcham Research, an electrical danger intelligence organization. However, if you have to discard the battery after a minor incident, an EV isn't really long-lasting.
It can be expensive to switch cell boxes because they can cost tens of thousands of dollars and add up to 50 % of the price of an EV.
Tesla Inc. has adopted the same strategy with its Texas-built Model Y, whose original structural power pack has been characterized by experts as having zero repairability, while some automakers, such as Ford Motor Co. and General Motors Co, claimed to have made battery packs easier to fix.
A request for comment was never answered by Tesla.
Many low-mileage Majority are found in a Reuters research of EV rescue sales in the United States and Europe, but there are also models from Nissan Motor Co., Hyundai Motor Company, Stellantis, BMW, Renault, and other manufacturers.
Industry-wide data is difficult to come by because EVs just make up a small portion of all vehicles on the road, but the trend of low-mileage zero-emission cars being scrapped with significant damage is expanding. Tesla has reduced production costs thanks to its decision to incorporate battery packs structurally into the body of the vehicle, but it runs the risk of shifting those costs up to consumers and insurers.
Tesla has not mentioned any issues with carriers writing off its automobiles. However, in January CEO Elon Musk claimed that in some cases, bonuses from third-party insurance companies were excessively high.
Already-high insurance premiums will continue to rise as EV sales increase and more low-mileage vehicles are scrapped after collisions, according to insurers and industry experts, unless Tesla and other automakers produce more easily fixable battery packs and give third-party access to battery cell data.
The processing of batteries is an important issue because the number of cases is going to rise, according to Christoph Lauterwasser, managing director of the Allianz Center for Technology, a research facility that is owned by the company.
Lauterwasser noted that the production of EV batteries emits significantly more CO2 than that of fossil fuel types, necessitating the use of thousands of miles of gas before the additional emissions can be offset.
He claimed that if you discard the car at an early stage, you have effectively lost all advantage in terms of CO2 emissions.
Although the majority of automakers claim that their battery packs can be repaired, some appear eager to divulge cell information. In the EU, automakers and carriers are already at odds over who will have access to the beneficial connected-car information.
Exposure to EV power data, according to Lauterwasser, is a component of that conflict. Although Allison has observed scratched battery packs with good undamaged cells within, it must write off those vehicles in the absence of diagnostic data.
The newer, more recoverable boxes from Ford and GM are advertised. However, according to experts, the fresh, sizable 4680 cells in the Model Y produced at Tesla's Austin, Texas, place are glued into a pack that makes up the structure of the vehicle and are difficult to remove or replace.
Teslas Musk announced in January that the automaker has been modifying the model and software of its vehicles to reduce maintenance costs and auto insurance rates.
The business also provides Tesla homeowners with its own insurance product at lower prices in a few U.S. states.
Insurers and business experts also point out that EVs have so far experienced fewer accidents than conventional cars because they are equipped with all the most recent safety features.
To the Grinder immediately
The Model Y battery pack has zero repairability, according to Sandy Munro, head of Michigan-based MunRo & amp Associates, which disassembles cars and counsels manufacturers on how to improve them.
According to Munro, a Tesla architectural power pack is headed straight for the hero.
The natural circular economy that automakers tout is already compromised by EV battery issues.
Michael Hill, head of operations at Synetiq, the largest salvage company in the UK, reported that over the past 12 months, there have been an increasing number of EVs at the Doncaster yard, where they must be checked to reduce the risk of fire. This number has increased from apparently 12 per three days to up to 20 per day.
We've noticed a significant change, and it affects all providers, Hill said.
Synetiq must replace the batteries from written-off cars and hold them in containers because there are presently no EV cell disposal facilities in the UK. According to Hill, Synetiq has stored dozens of hybrid power packs and lots of EV batteries at Doncaster, and at least 95 % of those batteries are intact and should be recycled.
Most EVs also have higher insurance rates than conventional vehicles.
The average monthly EV insurance pay in the United States in 2023 will be$ 26, 27 % higher than for a combustion-engine design, according to online trading Policygenius.
U.S. insurers are aware that it may cost more than$ 15 000 to replace this crucial component if even a minor accident causes damage to the battery pack, according to Bankrate, an online publisher of financial content.
For a Tesla Model 3 that sells for about$ 43, 000 but depreciates quickly over time, the cost of replacing the battery can reach$ 20,000 or more.
According to Andy Keane, the manager of the European insurer AXA's financial motor product division in the UK, replacing a battery can occasionally be impossible due to the high cost.
There are more and more repair facilities that focus on replacing chargers and repairing Vehicles. Older Tesla models' chargers have received the majority of Gruber Motor Co's attention in Phoenix, Arizona.
However, because insurers are unable to see Tesla's cell data, they have adopted a careful strategy, according to owner Peter Gruber.
According to him, an insurance company won't take that chance because doing so could result in a lawsuit if the car is damaged and they didn're able to complete it.
Symptoms
Research into EV security pain points is being funded by the American government under the direction of Thatcham, Synetiq, and underwriter LV.
The European Commission was asked to encourage standards to enable maintenance, repair, and recycling despite the fact that recently adopted EU power regulations do not particularly name cell repairs, according to a commission source.
In order to determine the health of power cells, carriers claimed to be able to fix the issue by making batteries into smaller components or sections that are easier to repair.
Various U.S. insurers opted not to comment.
However, Tony Cotto, director of car and insurance policy at the National Association of Mutual Insurance Companies, asserted that by streamlining the whole restore process, consumer access to vehicle-generated data will further improve driver safety and policyholder satisfaction.
In a training motion filed against Tesla in U.S. District Court in California in the middle of March, the issue of lack of access to crucial clinical data was brought up.
According to carriers, failing to act will cost customers.
Only a small portion of Allianz's motor insurance claims involve EV battery damage, but 8 % of cases in Germany, according to Lauterwasser. German insurers compile information on auto statements data and every adjust insurance rates.
According to Lauterwasser, if a model's price increases, premium levels may increase as the grade increases.
( Additional reporting by Victoria Waldersee in Berlin, edited by Ben Klayman and Matthew Lewis, by Nick Carey and Sarah McFarlane in London, Paul Lienert in Detroit, Gilles Guillaume in Paris, and Giulio Piovaccari in Milan)
