the push for so-called “sustainable” electric vehicles (EVs) is facing a major problem: minor damage to the battery pack can lead to the entire car being scrapped, leaving the expensive battery packs piling up in the scrapyard.
This issue is undercutting the gains from going electric, and causing higher insurance premiums.
With no way to repair or assess slightly damaged battery packs after accidents, EVs can lose up to 50% of their price tag, rendering it uneconomical to replace them, according to a Reuters report.
According to Thatcham Research, an automotive risk intelligence company, this issue undermines the idea of a “circular economy,” as battery packs that could be reused are instead thrown away.
“We’re buying electric cars for sustainability reasons. But an EV isn’t very sustainable if you’ve got to throw the battery away after a minor collision,” said Matthew Avery, a research director at Thatcham Research, an automotive risk intelligence company.
Scratched EV battery? Your insurer may have to junk the whole car https://t.co/9vYhdzgZBZ pic.twitter.com/dkGSmIneeR— Reuters (@Reuters) March 20, 2023
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