Electric cars might need twice as many batteries as we previously thought
The next generations of electric car batteries won’t last as long as previously thought, according to an expert from German investment bank Berenberg.
In fact, the next generation of batteries may have a shelf life of only five years, analyst Asad Farid told last week’s Battery Show in Detroit, Michigan — the premier industry event, reports Design News.
“We think the battery degradation rate in your electric car will increase rather than decrease going forward,” Mr Farid said.
That could be unexpected good news for ASX battery metals explorers focused on battery materials such as lithium, cobalt and graphite — many of which have made significant gains over the past 12 months.
The shorter life expectancy would be caused by three factors, Mr Farid said:
— A shift towards nickel-rich batteries which have a lower life cycle;
— A desire to move to faster charging speeds which can degrade batteries over time
— The use of air-cooling technology instead of more expensive liquid cooling, quickening battery death at more than double the rate.
“EV car owners will be tempted to replace their battery pack after four to five years, rather than buying a new electric car,” he said. This would maintain the resale value of electric cars.