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EV batteries lack reparability leading some insurers to junk whole cars after even minor collisionshttps://t.co/AqT7eYyc5E

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EV batteries lack reparability leading some insurers to junk whole cars after even minor collisions

A scratched or slightly damaged electric battery might be enough for some insurers to write off entire cars, as for many electric vehicles there is no way to repair battery packs after collisions.

As a result, the consumer — who likely acquired an electric vehicle wanting to reduce monthly costs — faces higher premiums and some countries are starting to see electric vehicle batteries piling up in scrapyards, according to Reuters.

Matthew Avery, research director at automotive risk intelligence company Thatcham Research, said the goal of electric vehicles was sustainability, but a lack of reparability is creating a whole new problem.

"We're buying electric cars for sustainability reasons," Avery said, Reuters reported. "But an EV isn't very sustainable if you've got to throw the battery away after a minor collision."

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Damaged electric vehicles that have been written off by insurers are pictured at UK salvage company Synetiq's yard in Doncaster, Britain, in this undated photo. Synetiq/Handout via REUTERS
These battery packs can also cost tens of thousands of dollars, representing as much as 50% of an EV's price tag. This also makes replacing batteries uneconomical.


These cars also pile up in scrapyards, usually with low mileage, exacerbating the problem.

According to Reuters, EV salvage sales in the U.S. and Europe includes low-mileage Teslas, Nissan Motor Co, Hyundai Motor Co, Stellantis, BMW, Renault and others.

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Unless reparability in EV batteries is addressed and fixed, the pile-ups will increase — and so too, will premiums, experts predict.


A partially disassembled 4680 structural battery pack from a Tesla Model Y, built in Austin, Texas, is displayed under a sheet of plexiglass in Auburn Hills, Michigan U.S. March 3, 2023. REUTERS/Rebecca Cook
Christoph Lauterwasser, managing director of the Allianz Center for Technology, a research institute owned by Allianz, called addressing the issue "crucial."

"The number of cases is going to increase, so the handling of batteries is a crucial point," Lauterwasser said.

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EVs need to be driven for thousands of miles before the extra emissions used to create them, which are more than fossil-fuel models, are offset. Should these EVs be scrapped before they reach that off-setting figure, they have more of an environmental impact than the cars they are attempting to replace.


A Tesla 4680 cell from a structural battery pack pulled from a Tesla Model Y, built in Austin, Texas, is displayed in Auburn Hills, Michigan U.S. March 3, 2023. REUTERS/Rebecca Cook
He added: "If you throw away the vehicle at an early stage, you've lost pretty much all advantage in terms of CO2 emissions."

Many carmakers have argued their battery packs are repairable but many car repair shops, insurers, and leasing companies are not aware of the data, spurring some legal f*ghts.


EVs are however loaded with safety features, so they have fewer accidents than traditional cars, insurers and industry experts have noted.

Policygenius, an online brokerage, reported the average U.S. monthly EV insurance payment is approximately $206, or 27% higher than a combustion-engine model.

Reuters contributed to this report.

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Scratched EV battery? Your insurer may have to junk the whole car
By Nick Carey, Paul Lienert and Sarah Mcfarlane







LONDON/DETROIT, March 20 (Reuters) - For many electric vehicles, there is no way to repair or a*sess even slightly damaged battery packs after accidents, forcing insurance companies to write off cars with few miles - leading to higher premiums and undercutting gains from going electric.

And now those battery packs are piling up in scrapyards in some countries, a previously unreported and expensive gap in what was supposed to be a "circular economy."

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"We're buying electric cars for sustainability reasons," said Matthew Avery, research director at automotive risk intelligence company Thatcham Research. "But an EV isn't very sustainable if you've got to throw the battery away after a minor collision."

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Battery packs can cost tens of thousands of dollars and represent up to 50% of an EV's price tag, often making it uneconomical to replace them.

While some automakers like Ford Motor Co (F.N) and General Motors Co (GM.N) said they have made battery packs easier to repair, Tesla Inc (TSLA.O) has taken the opposite tack with its Texas-built Model Y, whose new structural battery pack has been described by experts as having "zero repairability."

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Tesla did not respond to a request for comment.

A Reuters search of EV salvage sales in the U.S. and Europe shows a large portion of low-mileage Teslas, but also models from Nissan Motor Co (7201.T), Hyundai Motor Co (005380.KS), Stellantis (STLAM.MI), BMW (BMWG.DE), Renault (RENA.PA) and others.

EVs constitute only a fraction of vehicles on the road, making industry-wide data hard to come by, but the trend of low-mileage zero-emission cars being written off with minor damage is growing. Tesla's decision to make battery packs "structural" - part of the car's body - has allowed it to cut production costs but risks pushing those costs back to consumers and insurers.

Tesla has not referred to any problems with insurers writing off its vehicles. But in January CEO Elon Musk said premiums from third-party insurance companies "in some cases were unreasonably high."

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Unless Tesla and other carmakers produce more easily repairable battery packs and provide third-party access to battery cell data, already-high insurance premiums will keep rising as EV sales grow and more low-mileage cars get scrapped after collisions, insurers and industry experts said.

"The number of cases is going to increase, so the handling of batteries is a crucial point," said Christoph Lauterwasser, managing director of the Allianz Center for Technology, a research institute owned by Allianz (ALVG.DE).

Lauterwasser noted EV battery production emits far more CO2 than fossil-fuel models, meaning EVs must be driven for thousands of miles before they offset those extra emissions.

"If you throw away the vehicle at an early stage, you've lost pretty much all advantage in terms of CO2 emissions," he said.

Most carmakers said their battery packs are repairable, though few seem willing to share access to battery data. Insurers, leasing companies and car repair shops are already f*ghting with carmakers in the EU over access to lucrative connected-car data.

Lauterwasser said access to EV battery data is part of that f*ght. Allianz has seen scratched battery packs where the cells inside are likely undamaged, but without diagnostic data it has to write off those vehicles.

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Ford and GM tout their newer, more repairable packs. But the new, large 4680 cells in the Model Y made at Tesla's Austin, Texas, plant, are glued into a pack that forms part of the car's structure and cannot be easily removed or replaced, experts said.

In January, Tesla's Musk said the carmaker has been making design and software changes to its vehicles to lower repair costs and insurance premiums.

The company also offers its own insurance product in a dozen U.S. states to Tesla owners at lower rates.

Insurers and industry experts also note that EVs, because they are loaded with all the latest safety features, so far have had fewer accidents than traditional cars.

'STRAIGHT TO THE GRINDER'
Sandy Munro, head of Michigan-based Munro & a*sociates, which tears down vehicles and advises automakers on how to improve them, said the Model Y battery pack has "zero repairability."

"A Tesla structural battery pack is going straight to the grinder," Munro said.

UK salvage company Synetiq's yard in Doncaster

[1/3] Damaged electric vehicles that have been written off by insurers are pictured at UK salvage company Synetiq's yard in Doncaster, Britain, in this undated photo. Courtesy of Synetiq/Handout via REUTERS

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EV battery problems also expose a hole in the green "circular economy" touted by carmakers.

At Synetiq, the UK's largest salvage company, head of operations Michael Hill said over the last 12 months the number of EVs in the isolation bay – where they must be checked to avoid fire risk - at the firm's Doncaster yard has soared, from perhaps a dozen every three days to up to 20 per day.

"We've seen a really big shift and it's across all manufacturers," Hill said.

The UK currently has no EV battery recycling facilities, so Synetiq has to remove the batteries from written-off cars and store them in containers. Hill estimated at least 95% of the cells in the hundreds of EV battery packs - and thousands of hybrid battery packs - Synetiq has stored at Doncaster are undamaged and should be reused.

It already costs more to insure most EVs than traditional cars.

According to online brokerage Policygenius, the average U.S. monthly EV insurance payment in 2023 is $206, 27% more than for a combustion-engine model.

According to Bankrate, an online publisher of financial content, U.S. insurers know that "if even a minor accident results in damage to the battery pack ... the cost to replace this key component may exceed $15,000."

A replacement battery for a Tesla Model 3 can cost up to $20,000, for a vehicle that retails at around $43,000 but depreciates quickly over time.

Andy Keane, UK commercial motor product manager at French insurer AXA (AXAF.PA), said expensive replacement batteries "may sometimes make replacing a battery unfeasible."

There are a growing number of repair shops specializing in repairing EVs and replacing batteries. In Phoenix, Arizona, Gruber Motor Co has mostly focused on replacing batteries in older Tesla models.

But insurers cannot access Tesla's battery data, so they have taken a cautious approach, owner Peter Gruber said.

"An insurance company is not going to take that risk because they're facing a lawsuit later on if something happens with that vehicle and they did not total it," he said.

'PAIN POINTS'
The British government is funding research into EV insurance "pain points" led by Thatcham, Synetiq and insurer LV=.

Recently adopted EU battery regulations do not specifically address battery repairs, but they did ask the European Commission to encourage standards to "facilitate maintenance, repair and repurposing," a commission source said.

Insurers said they know how to fix the problem - make batteries in smaller sections, or modules, that are simpler to fix, and open diagnostics data to third parties to determine battery cell health.

Individual U.S. insurers declined to comment.

But Tony Cotto, director of auto and underwriting policy at the National a*sociation of Mutual Insurance Companies, said "consumer access to vehicle-generated data will further enhance driver safety and policyholders' satisfaction ... by facilitating the entire repair process."

Lack of access to critical diagnostic data was raised in mid-March in a class action filed against Tesla in U.S. District Court in California.

Insurers said failure to act will cost consumers.

EV battery damage makes up just a few percent of Allianz's motor insurance claims, but 8% of claims costs in Germany, Lauterwasser said. Germany's insurers pool data on vehicle claims data and adjust premium rates annually.

"If the cost for a certain model gets higher it will raise premium levels because the rating goes up," Lauterwasser said.

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Reporting by Nick Carey and Sarah McFarlane in London, Paul Lienert in Detroit, Gilles Guillaume in Paris and Giulio Piovaccari in Milan Additional reporting by Victoria Waldersee in Berlin Editing by Ben Klayman and Matthew Lewis

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Cliffs? I'm not reading all this sh*t.

This is some propaganda. 99% people reading this will be fooled.

For a battery to be “scratched” that means there was likely significant frame damage.

Significant frame damage usually leads to the car being considered totaled.

In the damn article it says 95% cells of thousands of battery packs that were checked are undamaged and should be reused. 95%!

That means there is some real inefficiency in the process of checking the batteries to make sure they’re ok - that’s what this article is really about. Also points out lawsuit against Tesla for lack of data available when checking batteries.

going from a tesla to a mercedes my insurance is a third of the price. make of that what you will lol Insurance companies dont wanna touch these things with a 10 foot pole

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qutaboi225 said Cliffs? I'm not reading all this sh*t.

basically EV might not be the answer lol

BurninLz said going from a tesla to a mercedes my insurance is a third of the price. make of that what you will lol Insurance companies dont wanna touch these things with a 10 foot pole

Them sh*ts malfunctioning and k*lling people thats a nightmare for insurance companies

myPOWER said This is some propaganda. 99% people reading this will be fooled. For a battery to be “scratched” that means there was likely significant frame damage. Significant frame damage usually leads to the car being considered totaled. In the damn article it says 95% cells of thousands of battery packs that were checked are undamaged and should be reused. 95%! That means there is some real inefficiency in the process of checking the batteries to make sure they’re ok - that’s what this article is really about. Also points out lawsuit against Tesla for lack of data available when checking batteries.

It’s the facts they are too expensive to repair or change. A mechanical engine is small fixes I imagine EVs are much more complex.

myPOWER said This is some propaganda. 99% people reading this will be fooled. For a battery to be “scratched” that means there was likely significant frame damage. Significant frame damage usually leads to the car being considered totaled. In the damn article it says 95% cells of thousands of battery packs that were checked are undamaged and should be reused. 95%! That means there is some real inefficiency in the process of checking the batteries to make sure they’re ok - that’s what this article is really about. Also points out lawsuit against Tesla for lack of data available when checking batteries.

You believe in climate change and aliens, huh?

ITookTheRedPill said You believe in climate change and aliens, huh?

real

Booda Sack said It’s the facts they are too expensive to repair or change. A mechanical engine is small fixes I imagine EVs are much more complex.

Also there simply isn’t enough trained technicians to service damaged EVs. Where I am if your Tesla is damaged it’s legitimately a 4 to 6 month wait period for parts and service for something as simple as windshield repair or broken headlights.

To "kill" one problem , you create another one

This feels like wild propaganda

Electric vehicles will go down as one of the biggest cons of our lifetime.

When you factor in all the emissions and pollution that must take place to both produce the components of the typical EV and the power at the power plants, plus the loss of 70-80% of the power before it ever reaches your home, and the lack of life (limited battery life and ability to be repaired), meaning EVs must be completely replaced more frequently than gas powered vehicles, there is zero benefit to EVs over gas vehicles.

In an internal combustion engine, the energy is released in the vehicle which significantly reduces wasted energy, and that is a huge savings in money, energy, and environmental terms.

Also, the people that must use chargers that aren't at their house frequently pay close to the same price as gas and lose countless hours of productivity waiting around for their cars to charge.

mars15 said Also there simply isn’t enough trained technicians to service damaged EVs. Where I am if your Tesla is damaged it’s legitimately a 4 to 6 month wait period for parts and service for something as simple as windshield repair or broken headlights.

Everything being shipped off to a company that disassembles and fix the broken parts and reship again. Takes a lot of down time. Gonna take a minute to fix all this sh*t. The new hummer is already having battery problems.

Geico charging me about $105 for my M3 insurance I’m in NC though

fine. where all these slightly damaged vehicles at so we can bid on em

myPOWER said This is some propaganda. 99% people reading this will be fooled. For a battery to be “scratched” that means there was likely significant frame damage. Significant frame damage usually leads to the car being considered totaled. In the damn article it says 95% cells of thousands of battery packs that were checked are undamaged and should be reused. 95%! That means there is some real inefficiency in the process of checking the batteries to make sure they’re ok - that’s what this article is really about. Also points out lawsuit against Tesla for lack of data available when checking batteries.

99% of people were still alive after catching…you know what, let’s not go there…

Op is a f*g**t

Booda Sack said It’s the facts they are too expensive to repair or change. A mechanical engine is small fixes I imagine EVs are much more complex.

Yes, but so is your engine or anything else that gets destroyed.

The point is - if the battery is fu*ked up to the point it even NEEDS to be repaired then the the car itself is likely already totaled to begin with.

Read the article again - 95% of cells checked are undamaged and ready to be reused.

ITookTheRedPill said You believe in climate change and aliens, huh?

climate change isn't a belief.

Article seems like propaganda, then noticed it was from fox so i'm not surprised since they've been anti ev from the jump.

its fu*k elon but when i saw "A replacement battery for a Tesla Model 3 can cost up to $20,000, for a vehicle that retails at around $43,000 but depreciates quickly over time." i found it funny because teslas seem to keep their value better than most vehicles.

myPOWER said climate change isn't a belief.

okay lil n*gga

Theprodigalone said Its not it causes more co2 to make the battery it self then whats it advertising to save its all a big money laundering scheme climate change is hoax

most people can't grasp this.

also, the entire electrical grid is powered by coal.

electric's are the biggest scam in history.

it's all a virtue signal by people who got guilted into that consumer bracket by the global warming hoax. then they try to guilt others into falling for the same sh*t they did because they can't swallow their pride and admit that they got duped by people like Greta Thunberg, AOC and Al Gore.