The path to zero emission vehicles
The sale of new internal combustion engine vehicles (ICE) is expected to be banned in the UK by either 2030 or 2035 - dependent on whether the new government reverses the 2035 extension implemented by the Sunak administration. The current Zero Emission Vehicle (ZEV) mandate dictates that 80% of new cars and 70% of new vans sold in the UK must be zero emission by 2030, rising to 100% by 2035 ¹.
Lack of EV battery confidence is a key barrier in EV adoption
As the number of electric vehicles rise, so too does the number of lithium-ion batteries in use. Even though many manufacturers offer an eight year or 100,000-mile battery warranty, lack of market confidence means that the EV battery remains an obstacle to widespread EV adoption.
What are the impacts of low market confidence in EV batteries?
Concerns around EV batteries have wide ranging market impacts including:
- Struggling EV retail sales - consumer concern that the battery will need replacing at an excessive cost is contributing to a lack of retail market confidence in EVs. New EV market sales are predominantly driven by business and fleet
- Negative impact on EV used sales – a survey by the Green Finance Institute found that 62% of drivers who don’t already own an EV said concerns around battery lifespan was a reason they would not buy a used EV ²
- Uncertain residual values impacting lease costs – battery life is an expensive unknown which is impacting residual values (RVs). This was described by the British Vehicle Rental and Leasing Association (BVRLA) in July as an ‘existential threat’ to the industry ³
- Fleet operator concerns – uncertain EV residual RVs are impacting leasing costs for fleet operators. The ability to offer second or third life leases is also affected by uncertainty around long term battery health
- High insurance costs – insurers remain nervous about the high cost of battery replacements which contributes to EV insurance premiums typically being more expensive than ICE vehicles
Richard Threlfall, LRW Engineering Associates Director and New Energy and Integration Lead, explains the importance of battery passports:
‘Right now, the battery in an electric vehicle represents a real unknown – for insurers, consumers, fleets, lease providers and the used market. Finding a way to provide reassurance will undoubtedly have a significant impact on wider market EV adoption and accelerate the journey to zero emission transport. My view is that battery passports are absolutely critical to the future success of electric vehicles.’
What does the future hold for battery passports and health checks?
Battery passports - From 1st February 2027, the European Union will legislate that an electric battery passport is mandatory for all EV and industrial batteries over 2 kWH sold into the EU market. This will also apply to vehicles sold in the UK 4. Manufacturers will be responsible for supplying the passport which will include information on the battery’s lifecycle, carbon footprint, production process and transportation of the vehicle and its parts.
Battery health certification scheme – A scheme, similar to those already in place in countries including Norway, is being considered for used EV batteries. The United Nations is also working on global technical regulation for EV batteries (GTR 22) which will require new EVs to include an easily accessible battery state of health monitor.
Work to date is encouraging. Providing transparent, standardised information on the initial providence and ongoing used state of battery health will be critical to mass EV adoption and more sustainable transport.
Find out more
The LRW team is made up of specialist engineers. We are experts in what we do – we work on cutting edge electric, hybrid, and hydrogen projects across automotive, marine and aviation applications. To find out more, please get in touch at [email protected].
Sources
* EV numbers: UK stats Zapmap EV stats
Global stats: Our world in data - EV sales
¹ Gov.UK: Pathway to zero emission vehicle transition becomes law
² Green Finance Institute: Used EV report
³ Fleet News: Collapsing BEV values pose ‘existential threat’ to leasing industry
4 RAC: New battery passport set to impact EV market in the UK
