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Residual Value: Electric Batteries vs. Internal Combustion Engine Vehicles

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21–30 of 54 posts

Re: Residual Value: Electric Batteries vs. Internal Combustion Engine Vehicles

#21
I believe that as batteries get on in in life their rate of decay accelerates. It's not a linear process.

Maybe there's room for recovering the raw materials effectively, and I wonder if there are upfront tradeoffs that could be exchanged to make that easier. Musk has repeatedly said that scale cost reductions leads ultimately to material cost limit and it's already up to ~50$\130$ per kwH.

Re: Residual Value: Electric Batteries vs. Internal Combustion Engine Vehicles

#22

Do the batteries retain so much of their value because energy density (J/kg) of batteries hasn't improved for a long time? If a battery new tech comes out that is sufficiently energy dense (and is mass produced), these old batteries won't have much value except as scrap. https://www.technologyreview.com/s/602245/why-we-still-dont-...

I re-read the article to be sure and here is that answer.

$15000 per 10 year old Tesla battery is the answer to the question, 'how much would a 10 year old Tesla battery be worth to a utility if used to supply peeking power?'

Ans: $15k

They get that number multiplying the going rate for peek power by the remaining battery capacity over 16 years.

Year 1: 0.0385 MW/days X $100 X 365 days = $1405

Over a 16 year investment period adds up to $15k.

Re: Residual Value: Electric Batteries vs. Internal Combustion Engine Vehicles

#23

This is a terrible analysis. First of all, it assumes that the cost of a kWh of battery remains at today's high value. If battery costs are falling rapidly (and they are), then the value of a used battery pack will be driven down as inexpensive new packs come on the market. Second, it ignores the fact that 10-year-old packs will have a substantially higher rate of catastrophic failure than new packs, and if reliabili…

Where does the author give a battery resale value for the Fiat 500e? Since it has a small battery, it degrades much faster per mile than a large battery.

it weights 1/3 of tesla so it degrades 3x slower

Re: Residual Value: Electric Batteries vs. Internal Combustion Engine Vehicles

#24
post #23

Earlier quoted context omitted.

Where does the author give a battery resale value for the Fiat 500e? Since it has a small battery, it degrades much faster per mile than a large battery.

it weights 1/3 of tesla so it degrades 3x slower

What has the weight of the battery to do with degradation speed? It is the cycle count which determines battery aging, and for the same distance driven, a Tesla has far fewer battery cycles than a smaller vehicle. The energy consumption of a Tesla is higher than that of smaller vehicles, but by a surprisingly small amount, as kinetic energy can be (partially) recovered. At highway speeds, a Tesla even sometimes consumes less energy than some smaller EV due to its better aerodynamics.

Re: Residual Value: Electric Batteries vs. Internal Combustion Engine Vehicles

#25
post #21

I believe that as batteries get on in in life their rate of decay accelerates. It's not a linear process. Maybe there's room for recovering the raw materials effectively, and I wonder if there are upfront tradeoffs that could be exchanged to make that easier. Musk has repeatedly said that scale cost reductions leads ultimately to material cost limit and it's already up to ~50$\130$ per kwH.

Apparently, recovery of lithium from batteries during recycling is not economical, either in terms of money or energy efficiency. Additionally, lithium batteries are more difficult to recycle due to their complexity and the amount of variation between battery types.

Compare this with lead acid batteries. About 99% of lead acid batteries are recycled, and the recycling process itself is rather efficient.

http://www.sciencedirect.com/science/article/pii/S2214993714...

Re: Residual Value: Electric Batteries vs. Internal Combustion Engine Vehicles

#26

I am of the opinion that the EV market is going to be held back until we have standard battery packs of known price, quality, and warranty. There's no good reason that this can't be taken on by some standards body. ANSI? Milspec? Please, somebody!

It hasn't happened for mobiles or laptops, and I suspect similar reasons will prevent it from happening for cars.

As long as battery life, size and weight are all important to the buyers, manufacturers would rather put in the extra customization work to get a competitive advantage.

Re: Residual Value: Electric Batteries vs. Internal Combustion Engine Vehicles

#27

This is a terrible analysis. First of all, it assumes that the cost of a kWh of battery remains at today's high value. If battery costs are falling rapidly (and they are), then the value of a used battery pack will be driven down as inexpensive new packs come on the market. Second, it ignores the fact that 10-year-old packs will have a substantially higher rate of catastrophic failure than new packs, and if reliabili…

$4k sounds like a market failure, and probably Chrysler Fiat mismanaging the project. They treat the 500e with utter contempt. If there's 18 kWh of the 24 kWh left, that's just $222/kWh. That would be a fantastic battery system for an off the grid home.

Well, it's a "compliance car": http://www.autoexpress.co.uk/fiat/500/87129/sergio-marchionn... . It would be far better if they took the idea seriously and did a proper electric car.

Pity, because I quite like the styling. They're nowhere near that cheap in the UK (ebay has exactly one, at £11,000) while Leaves are widely available.

Depreciation seems to be brutal for electric cars, and not just for the battery. It's more like the mobile phone market in the early 2010s: every year brings new features and is noticeably better.

Re: Residual Value: Electric Batteries vs. Internal Combustion Engine Vehicles

#28
post #26

I am of the opinion that the EV market is going to be held back until we have standard battery packs of known price, quality, and warranty. There's no good reason that this can't be taken on by some standards body. ANSI? Milspec? Please, somebody!

It hasn't happened for mobiles or laptops, and I suspect similar reasons will prevent it from happening for cars. As long as battery life, size and weight are all important to the buyers, manufacturers would rather put in the extra customization work to get a competitive advantage.

Being able to quickly swap out a standardized battery at a charging station would be a huge competitive advantage.

Re: Residual Value: Electric Batteries vs. Internal Combustion Engine Vehicles

#29

This is a terrible analysis. First of all, it assumes that the cost of a kWh of battery remains at today's high value. If battery costs are falling rapidly (and they are), then the value of a used battery pack will be driven down as inexpensive new packs come on the market. Second, it ignores the fact that 10-year-old packs will have a substantially higher rate of catastrophic failure than new packs, and if reliabili…

There is no such thing as a market price for a lithium battery. Even standard sized cells are far from a tradeable commodity.

Things like double digit subsidies and grants for eco-* stuffs in China and EU distort the picture.

What it means is that biggest Chinese EV makers with big enough GR-office can get cells for 20% of what is a wholesale price for Western buyer.

Chinese complain that 2kw/h battery packs for scooters cost $400 retail. They probably don't know how much they cost in US.

Re: Residual Value: Electric Batteries vs. Internal Combustion Engine Vehicles

#30
post #22

Do the batteries retain so much of their value because energy density (J/kg) of batteries hasn't improved for a long time? If a battery new tech comes out that is sufficiently energy dense (and is mass produced), these old batteries won't have much value except as scrap. https://www.technologyreview.com/s/602245/why-we-still-dont-...

I re-read the article to be sure and here is that answer. $15000 per 10 year old Tesla battery is the answer to the question, 'how much would a 10 year old Tesla battery be worth to a utility if used to supply peeking power?' Ans: $15k They get that number multiplying the going rate for peek power by the remaining battery capacity over 16 years. Year 1: 0.0385 MW/days X $100 X 365 days = $1405 Over a 16 year investme…

But the batteries don't have a capacity of 0.0385 MW-days. They have a capacity of 0.0035 MW-days when brand new, or 0.0032 MW-days if degraded to 90% capacity. (It looks like they divided kilowatt-hours by 2 instead of 24 to get kilowatt-days.) Not only that, but it looks like off-peak power is about 70% as expensive as peak power, so it'll cost $70 per MW-day to charge the battery.

Year 1 (corrected): 0.0032 MW-days x ($100 - $70) x 365 days = $35.04

Edit: This assumes they're cycling the battery once per day. Presumably there's only one period each day when they can sell at peak and one period each day when they can buy at off-peak.

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