Startup companies have joined the race to evaluate and verify used electric vehicles‘ battery state and performance, Reuters reported. These battery-testing technologies aid buyers in determining the actual worth of secondhand EV models.
Significance
Prospective buyers of internal combustion engine-powered vehicles can easily estimate the worth of the model based on its consumed mileage and years of ownership.
However, it does not apply to used EV models. These modern vehicles’ value apparently relies on the batteries’ driving range and charging capacities.
The industry initially had no available methods for measuring battery health. Finally, various companies aiming to develop effective and efficient tools for battery testing started to emerge. Some developments even boast testing that only takes minutes.
Battery test breakthroughs
British EV battery insight and warranties startup Altelium introduced an electric car battery health test and certificate. It plans to launch the tool as early as this year to over 7,000 auto dealerships in the US. It will also become available in more than 5,000 UK-based dealerships via service providers like GardX and Assurant.
“If the secondhand car market doesn’t work properly, the new car market doesn’t work properly and the electric transition won’t happen. We’re in an implementation race.”
Alex Johns, Altelium’s Business Development
Apart from Altelium, Australia’s startup Aviloo also claims to have developed a battery testing tool for car dealers and EV owners. It discovered that battery health can differ by up to 30% after hitting 100,000 km (62,140 miles) mileage.
“With an EV, mileage and age don’t tell you anything. It’s all about the battery.”
Marcus Berger, Aviloo CEO
Aures Holdings’ EV business unit, Driverama, employs Aviloo to eliminate models that have sub-80% battery capacity or battery defects, according to Chief Eldar Vagabov. For context, the company acquires approximately 100,000 used EVs in Germany every year for sale in the central European markets.
EV prices declined in September
Recurrent data revealed that used EV prices declined 32% year-on-year in September in the US market. In contrast, fossil fuel-powered car prices dropped only 7%.
In the UK, used EV prices dropped 23% YoY in August, while traditional vehicles surged at least 4%. AutoTrader cited “consumer concerns around battery life in used EVs” as a major challenge in the shift toward e-mobility.
Moreover, AutoTrader and Deutsche Automobil Treuhand also disclosed that 3-year-old EV models’ residual values are more than 10% lower than their traditional car counterparts in the UK and German markets.
“Knowing the capacity of that (EV) battery is going to be critical.”
Stephanie Valdez Streaty, Atlanta-based Cox Automotive’s Mobility R&D Director
For context, an EV battery accounts for about 40% of the new model’s overall pricing. That said, new EV owners must crucially take care of this particular component, especially when they consider selling them in the used market after some time. Finding ways to determine batteries’ health status is crucial, considering that most automakers display higher estimated driving ranges to attract customers.
