While electric vehicles are often praised for their advantages in the environment and performance, the issue of battery damage is becoming more severe, and there is less talk about it. Nowadays, the integration of batteries deep into the structure of the car has made the situation much worse. Therefore, a simple malfunction can stop the vehicle, not because the drive is broken, but because it is extremely expensive to repair or change the whole battery pack.
This scenario is not only a problem of technology but also a financial one. According to industry analysts, batteries and the parts related to them make up more than 50% of an EV.” If wear or an accident causes the battery to fail or be damaged, the vehicle will be removed from the road, in which case it is called a total loss. These are bad news not only for car owners, but also for insurance and car companies.
On the reverse, we have CATL, the leading EV battery manufacturer in the world. The company has a response to this emergency, which is the introduction of a service that is only available in China. This is one of the most significant movements we have seen from this battery company in recent times. The range of battery-related services is what the new brand “Ning” from CATL is offering: battery repair, testing, maintenance, refurbishment, and recycling. The question is, at what cost? The repair is estimated to cost only 10–15% of a full battery replacement, which is a major step towards making the ownership of EVs less of a burden, thus helping the environment by conserving the life of the EV and lowering the amount of waste.
This idea is on time with the current lithium prices, which are going up and down, and the raw material supply chain, which is going through tough times. In such a world, any move that would increase battery life and reduce the need for battery replacements would be highly profitable. The car industry can be among the winners of this strategy as the scenario has several advantages for the producer:s a) they can offer customers a cheaper service when this is required and thus extend the use of the car, b) they gain store credit among customers if a battery problem becomes a reality, and hence c) they get a competitive advantage.
Besides the direct and immediate advantages that the move from CATL has, it also solves problems related to the sustainability of the future. Batteries that have been refurbished can even be used for home or grid energy storage, and the parts that are no longer necessary can be recycled.d Just that way of recycling will help green goals and is also an argument to promote EV use globally.
Even though CATL’s “Ning” service is now only available in China, the company has set a new trend that other countries will be watching as they are going to face the same challenge of EV battery issues and as battery integration keeps getting deeper and more widespread the number of EVs on the streets will be increasing which will, in turn, lead to a greater requirement for cost-effective repair infrastructure. By combining factors like its del properties and technological leadership, the company from China could be a trendsetter embracing a new set of standards that shake the EV economic paradigm, making electric mobility more accessible, longer-lasting, and environmentally friendlier for 4 billion people on the Earth coming in the era of electric vehicles.
