EV battery capacity retains over 80% even after 200.000 km: How residual value evolves across lifecycle phases
As electric vehicles (EVs) become increasingly mainstream, the question of battery longevity and its impact on vehicle residual value is often raised. Batteries, which constitute 20–30% of an EV’s cost, are seen as a critical component determining the long-term economic feasibility of these vehicles. Public perception has been shaped by sceptical headlines warning of rapid battery degradation and unsellable used EVs. However, a recent in-depth study by P3 Group challenges these assumptions, offering a clear, data-driven perspective. The findings reveal that most EV batteries retain more than 80% of their capacity even after 200.000 kilometres, proving their resilience and long-term value.
Early fears about battery ageing
Concerns about EV battery degradation have led to widespread scepticism, with media reports predicting a steep decline in capacity and residual value over time. Many fear that an ageing battery could make used EVs economically unviable, with reduced range limiting their practicality.
P3’s study, however, paints a far more positive picture. Drawing on real-world data from over 7.000 vehicles, it shows that battery capacity loss occurs gradually, with most batteries retaining 80% or more of their original capacity even after 200.000 kilometres. These findings contrast starkly with earlier, more pessimistic laboratory estimates.
The lifespan of an EV battery: A phase-by-phase breakdown
EV battery degradation follows a predictable trajectory, divided into three key phases:
- End-of-warranty (EoW): This phase begins when a vehicle exceeds its warranty period, typically eight years or 160.000 kilometres. By this stage, most batteries still retain at least 80% of their original capacity.
- End-of-first-life (EoFL): The battery reaches this stage when its capacity no longer meets drivers’ expectations. Despite this, batteries can often be repurposed for second-life applications, such as home energy storage systems.
- End-of-second-life (EoSL): At this stage, the battery’s capacity and safety levels make it unsuitable for further use. However, it remains valuable for its recyclable materials, such as lithium and nickel.
Factors influencing battery ageing
Battery ageing is influenced by two primary factors: calendar ageing (time-related) and cyclic ageing (usage-related).
- Calendar ageing occurs due to chemical changes within the battery over time, even when it is not in use. High temperatures and prolonged storage at high states of charge (SoC) accelerate this process, while moderate conditions (10–50% SoC and cooler environments) help slow it.
- Cyclic ageing is driven by usage patterns, such as charging and discharging behaviours. Practices like frequent fast charging or repeatedly draining the battery to near-zero can significantly speed up degradation. Conversely, moderate charging habits—keeping the battery between 20–80% SoC—and avoiding extreme temperatures can extend battery life.
Maintaining value through second life and recycling
One of the most significant findings from P3’s study is that EV batteries retain substantial value beyond their first lifecycle. Once removed from vehicles, many batteries still possess sufficient capacity for secondary uses, such as stationary energy storage. This creates opportunities for second-life applications, which extend the economic viability of EV batteries.
At the end of their second life, even heavily degraded batteries remain valuable for recycling. Essential materials like lithium, nickel, and copper can be recovered and reused, reducing reliance on virgin resources and supporting the circular economy.
Long warranties reflect confidence in battery durability
Manufacturers’ growing confidence in battery technology is reflected in increasingly robust warranty terms. Standard warranties for EV batteries typically extend to eight years or 160.000 kilometres, but some manufacturers, like Lexus, now offer warranties of up to 10 years or 1.000.000 kilometres.
These warranties provide peace of mind for consumers and affirm the resilience of modern battery systems. Technological advances in cell chemistry, thermal management, and battery management systems have significantly improved durability, ensuring that batteries retain high capacity levels for longer periods.
A bright future for EV batteries
P3’s findings provide a reassuring perspective for EV owners and prospective buyers. Modern EV batteries show remarkable longevity, retaining over 80% of their capacity even after extensive use. Beyond their first lifecycle, batteries remain economically valuable through second-life applications and recycling opportunities.
By dispelling myths about rapid battery ageing and highlighting the enduring value of EV batteries, this study reinforces the economic and environmental sustainability of electric vehicles. With continued advancements in technology and a maturing recycling ecosystem, the future of EV batteries looks brighter than ever.
Source: P3
