It’s been said that an electric vehicle (EV) is its battery and then everything else.
As Ottawa mandates selling EVs, and with an increasing number of offerings for consumers, the potentially major issue of battery replacement remains uncertain.
In a video uploaded Dec. 12, automotive journalists Andrea and Zack Spencer of the Motormouth Youtube channel told the story of Kyle Hsu, a 2022 Hyundai Ioniq 5 owner who faced a $60,000 bill to replace its battery after the battery protection cover was damaged. That was more than the $55,000 cost of the car brand new, resulting in the insurer declaring the car a writeoff.
Confirming damage to the battery opened a can of worms for Mr. Hsu as he navigated what roles the dealer, head office, and manufacturer had to play while considering the impact on his insurance due to the potential loss of his clean driving record.
Mr. Hsu’s story illustrates the problem the whole auto industry faces on the price of and process for battery replacements as EVs slowly proliferate and age.
Hyundai Canada said Mr. Hsu’s situation is a very rare one and that there isn’t one set price for every battery replacement.
“Battery cost is a challenge for our business, which requires Hyundai Canada to continue evaluating its battery replacement and costing processes,” Jennifer McCarthy, national PR manager at Hyundai Canada, told the Spencers.
Mr. Hsu explained that if the battery has been impacted, it could be out of warranty and then the owner would be liable for potential hazards caused by the car.
“So I will be liable if it’s causing fires or explosions. So that’s why I follow their [Hyundai’s] advice to make the insurance claim and then follow their advice on replacing the whole battery,” he said in the video.
“So that makes me need to think twice before I make the decision to buy the EV car again.”
Mr. Hsu suggests that potential EV buyers do their due diligence: Know what may void the warranty, like scratches on the battery’s protective cover. Understand that dealing with the dealership is not the same as dealing with the carmaker. And learn about resale prospects.
“I cannot justify the reasons anymore. If I know the car has no used-car value after a year—the battery will probably take out all the values of your car,” Mr. Hsu said.
Learning Curve
Estimates vary on the life of an EV battery. It also depends on the climate. In a moderate climate, today’s batteries may last 12 to 15 years, but in Canada’s extreme climate, that lifespan is more like 8 to 12 years, according to the U.S. National Renewable Energy Laboratory.EV battery warranties are generally for eight years or 160,000 kilometres.
In a column for driving.ca, automotive journalist Lorraine Sommerfeld noted that early EV adopters are running up against their warranties.
Her article cited the case of a 2017 Hyundai Ioniq with over 172,000 kilometres and being out of warranty. The cost of a new battery would be more than $50,000.
Hyundai Canada told Global News the case “should have been escalated immediately for additional review.” And Ms. Sommerfeld explained that manufacturers, dealers, and consumers are on a learning curve when it comes to EVs.
Another incident cited in Ms. Sommerfeld’s article is that of a $45,000 Kia Nero EV. An impact with a metal bar on the road pierced the battery and caused the loss of its coolant. The resulting replacement cost was $52,000.
Rob de Pruis, the Insurance Bureau of Canada’s national director of consumer and industry relations, told The Epoch Times in a statement: “In EVs, batteries are typically mounted underneath the passenger compartment and cover a large area. This makes them more vulnerable to damage, while only a small amount of damage to an EV battery can render it unusable.”
Mr. de Pruis said EV premiums are calculated in the same way as gas-powered car premiums, based on a multitude of factors including the make and model of the car and the motorist’s driving record.
In an Oct. 25 Texas Public Policy Foundation (TPPF) study titled “Overcharged Expectations: Unmasking the True Costs of Electric Vehicles,” co-authors Brent Bennett and Jason Isaac wrote: “Because most EVs are relatively young, it is not yet known how long the average EV battery will last and whether it makes more sense to replace it or to scrap the whole vehicle.”
The EV scrappage rate is already higher than for gas-powered cars and is likely to rise in the future as the average age of the EV fleet increases, according to the TPPF.
Lack of Aftermarket
Mr. de Pruis said EV’s have a higher cost of repair.“Higher repair costs for EVs are the result of more expensive replacement parts that are not as readily available relative to parts required for a car with a combustion engine. There are also fewer mechanics specializing in repairing EVs,” he said.
In a May episode of “The Driving Podcast,” Ms. Sommerfeld spoke with Chris Muir, an EV instructor at Centennial College in Toronto, who discussed a related problem.
Some EV manufacturers act like tech firms and don’t share information about their products, he said. Thus, Mr. Muir explained, servicing EVs suffers from a lack of parts and the aftermarket can’t adapt as quickly as it can with gas-powered cars.
“It’s not fair to the consumer,” he said. “Our ability to get parts either from the original manufacturer or the aftermarket shouldn’t be hindered, regardless of the vehicle.”
Mr. Muir described the EV landscape as a “Wild West,” where technologies are closely guarded in a race to be first.
“It’s really important for agencies … in the U.S. and Transport Canada to defend a consumer’s right to not have their vehicle be unusable, or intensely expensive to make it usable, after just a few years,” Ms. Sommerfeld said.
Given Ottawa’s push for EV adoption, The Epoch Times asked Transport Canada about battery replacement.
In a Dec. 19 statement to The Epoch Times, Transport Canada communications adviser Katherine Proulx said: “Questions related to battery replacement or consumer concerns related to warranties, extended warranties and customer satisfaction should be sent to the manufacturer or the provincial/territorial consumer affairs ministry.”
The government’s new Electric Vehicle Availability Standard, announced Dec. 19, claims that owning an EV is more affordable over the long run than owning a comparable gas-powered car. In addition, it said that with purchase incentives EVs hit cost parity with gas vehicles within four years.
But nowhere in the release do the feds discuss the cost of potential battery replacements.
