Concerns about electric vehicle (EV) battery longevity may be unfounded, according to a new study by Pickles, potentially boosting the used EV market in Australia. The study, which analyzed over 250 used EVs with more than 120,000km on their odometers, found that batteries retain a surprisingly high capacity, easing concerns about resale values and depreciation.
Pickles' Automotive Report Highlights Battery Health
Pickles, an Australian auction giant, released its Quarterly Automotive Report for the fourth quarter of 2024, detailing research conducted by Datium Insights. The data suggests EV batteries last longer than many critics believe.
Pickles' chief commercial officer, Fraser Ronald, stated that the report provides "some of the first insights available in the Australian market… in relation to used EV battery health."
Battery Capacity Remains High
The study revealed that, on average, used EVs with over 120,000km retained more than 90 percent of their original battery capacity. Furthermore, data showed minimal capacity loss within specific mileage ranges:
| Distance Travelled (km) | Battery Capacity Retained |
|---|---|
| 0-20,000 | 98.2% |
| 20,000-40,000 | 95.7% |
| 40,000-80,000 | 94.5% |
| 120,000+ | 90.1% |
Age Doesn't Significantly Impact Battery Health
The study also examined the impact of age on battery capacity. Results showed that EVs older than four years still retained an average of 93.7 percent of their battery health:
| Vehicle Age (Years) | Battery Capacity Retained |
|---|---|
| 0-2 | 97.2% |
| 2-4 | 95.6% |
| 4+ | 93.7% |
Brand Performance
Pickles also conducted 159 tests across Tesla, Hyundai, and BYD EVs, showing strong results for all three brands:
| Brand | Average Battery Health | Average Odometer Reading (km) | Average Age (Months) | Tests Completed |
|---|---|---|---|---|
| Tesla | 93.3% | 42,263 | 27 | 82 |
| Hyundai | 99.3% | 29,237 | 39 | 64 |
| BYD | 98.6% | 15,619 | 17 | 13 |
Pickles Launches Battery Health Assurance Program
Based on these findings, Pickles is developing an "EV battery health assurance process" to provide buyers with trusted battery performance results, potentially increasing used EV sales.
Brendon Green, Pickles' general manager for automotive solutions, stated that early data suggests battery health is in line with manufacturer expectations.
Used EV Sales Surge
Pickles experienced a record quarter for used EV sales, selling 120 units in the final three months of 2024, compared to just 115 for the entire year of 2023, and 334 throughout 2024. Private buyers accounted for 51 percent of these sales, compared to 24 percent for petrol and diesel vehicles.
In comparison to the same quarter of the previous year, Pickles noted a 190.2 percent increase in EV sales, contrasting with an overall vehicle sales increase of 15.4 percent. Hybrid vehicle sales also rose by 112.8 percent, while sales of used petrol-powered vehicles declined by 4.4 percent.
Context of the Australian EV Market
New EV sales in Australia reached a record 91,292 deliveries last year, representing a 4.7 percent increase over the previous year. However, this growth rate was lower than the triple-digit increase seen in 2023, largely due to a slowdown in Tesla sales.
What We Think
Pickles' study provides valuable data that could alleviate consumer concerns about EV battery longevity, potentially boosting the used EV market in Australia. As more EVs enter the used car pool, this research could play a vital role in building confidence and driving sales.
