Electric vehicle (EV) battery performance has improved significantly, making EVs a more practical option for fleet operators in the UK. Research shows that average battery degradation rates have dropped from 2.3% in 2019 to 1.8% annually, with some models achieving as low as 1% per year. This means modern EV batteries can last over 20 years, often outliving the vehicles themselves.
Key findings include:
- Battery Lifespan: EV batteries now maintain around 90% health even after 120,000 miles.
- Cost Savings: Switching to EVs could save fleets approximately £12,000 per vehicle over its lifespan.
- Charging and Usage: Avoiding frequent rapid charging and maintaining charge levels between 20%-80% helps prolong battery life.
- Technology Improvements: Advances like better thermal management and solid-state batteries are extending battery durability.
- Monitoring Tools: Telematics systems enable real-time tracking of battery health, helping fleets optimise usage and reduce costs.
These improvements make EVs a reliable, cost-effective choice for fleet operators, supporting longer vehicle lifecycles and reducing maintenance expenses.
New study reveals EV batteries retain 99% health after 120,000 kms
Key Findings from Recent Research
Recent studies have revealed promising improvements in the performance of EV batteries, especially for fleet applications. These findings are reshaping how UK fleets plan their electrification strategies, particularly in terms of long-term cost and efficiency.
Average Degradation Rates and Battery Lifespan
Geotab's research on 10,000 EVs shows that battery degradation rates have improved significantly, averaging just 1.8% per year compared to 2.3% in 2019. Some top-performing models even achieve a rate as low as 1% annually. With these figures, Geotab estimates that EV batteries could last over 20 years.
Arval's analysis of 8,300 vehicles adds further confidence, showing an average battery health of 93% after 44,000 miles. Even vehicles with more than 120,000 miles on the clock maintained nearly 90% battery health.
The progress over recent years is striking. For instance, EVs produced in 2016-2017 showed 76% battery health at 90,000 miles, while 2023 models recorded 86% health at the same mileage - a 10-point improvement in just six years.
"EV battery lifespan: Most EV batteries last 15-20 years, with an average degradation rate of about 1.8% per year under moderate conditions." - Charlotte Argue, Senior Manager, Sustainable Mobility at Geotab
These figures highlight how advancements in battery technology are extending their lifespan and reliability, particularly under real-world conditions.
Laboratory vs Real-World Results
One of the most surprising findings from recent research is that EV batteries tend to perform better in real-world conditions compared to laboratory predictions. A study by Stanford University suggests that batteries in everyday driving situations could last up to a third longer than previously anticipated.
The difference lies in how tests are conducted. Laboratory tests often use constant discharge rates, which don't mirror actual driving habits. Real-world driving involves frequent acceleration, braking (which regenerates power), and rest periods - all of which contribute to better battery longevity.
"Real driving with frequent acceleration, braking that recharges the batteries, stopping to pop into a store, and letting the batteries rest for hours at a time, helps batteries last longer than we had thought based on industry standard lab tests." - Simona Onori, associate professor of energy science and engineering in the Stanford Doerr School of Sustainability
This insight is particularly relevant for fleet vehicles, which often spend considerable time parked or idling. These usage patterns mean that time, rather than the number of charge cycles, becomes the primary factor in battery ageing. High-utilisation vehicles, therefore, don’t necessarily experience faster degradation.
Recurrent Auto's data from 15,000 drivers supports this optimistic outlook, showing that battery replacements are rare - only about 1.5% of EVs require a replacement. This provides fleet operators with a solid foundation for predicting battery performance over time.
Battery Technology Improvements
The improved degradation rates are a direct result of advances in battery design and manufacturing. Modern battery management systems are now better equipped to handle stress from fast charging and deep discharges, which helps extend battery life.
Thermal management has also seen significant progress. For example, liquid cooling systems, like those in the 2015 Tesla Model S, show an annual degradation rate of 2.3%, compared to 4.2% for the 2015 Nissan Leaf, which uses passive air cooling. This demonstrates just how crucial effective cooling systems are for maintaining battery health.
Looking forward, emerging technologies like solid-state and lithium-sulphur batteries are pushing the boundaries even further. These innovations offer up to 40% higher energy density, faster charging times, and longer lifespans. For instance:
- CATL has started trial production of solid-state cells with an energy density of 500 Wh/kg.
- Samsung is piloting batteries capable of a 600-mile range, 9-minute charging, and a 20-year lifespan.
- Toyota is developing solid-state batteries promising ranges up to 745 miles and charging times under 10 minutes.
- Li-S Energy has unveiled semi-solid-state lithium-sulphur cells achieving 498 Wh/kg energy density on the first discharge, retaining 456 Wh/kg after cycling.
These advancements not only promise lower maintenance costs but also give fleet managers more predictable replacement timelines, making EV adoption even more appealing.
Factors Affecting Battery Degradation in Fleets
For fleet managers planning their transition to electric vehicles (EVs), understanding the factors that lead to battery degradation is essential. While advancements in battery technology are extending their lifespan, several key elements still play a significant role in how quickly batteries lose capacity over time.
Temperature and Climate Effects
The UK's moderate climate offers a natural advantage for fleet operators, as extreme temperatures are less common. Temperature has a major impact on battery health. Prolonged exposure to heat speeds up chemical reactions within the battery, accelerating wear and reducing both lifespan and performance. Research shows that EVs in hotter climates experience faster battery decline compared to those in cooler, more temperate regions like the UK.
On the flip side, cold weather presents its own challenges. Low temperatures can slow down the chemical processes that power batteries, which can reduce both power output and charge retention. Additionally, cold weather can shorten an EV’s range, making winter conditions a crucial consideration for UK fleet operators. Simple solutions, such as using heated seats instead of warming the entire cabin or parking vehicles in shaded areas or garages, can help preserve battery performance during colder months.
"Responding to the issue of battery longevity will require an enhanced understanding of the data, and collaboration across the mobility sector - between insurers, fleets, repairers, and OEMs. This kind of action will be crucial should fleets be transitioning to electric in line with Government mandates." - James Fisher, CEO, Gecko Risk Limited
These temperature-related challenges are closely connected to charging behaviours, which further influence battery performance.
Charging Behaviour and Usage Patterns
How EVs are charged and used has a direct impact on battery degradation. Over time, batteries degrade through two main processes: cycling (repeated use) and calendar ageing. Factors such as driving habits, ambient temperatures, state of charge, and frequency of charging all contribute to this wear. For example, frequent use of DC fast charging can accelerate degradation.
To maximise battery lifespan, it’s recommended to keep the charge level around 80% and avoid full discharges or constant rapid charging. Batteries with fewer rapid-charging cycles tend to degrade more slowly, retaining more value over time. However, as batteries age, their response to charging strategies may change, requiring fleet managers to adjust their approach. This makes careful planning around vehicle use and maintenance essential.
Technology Improvements
Advances in technology are also helping to slow battery degradation. Modern Battery Management Systems (BMS) play a critical role in extending battery life and optimising driving range by carefully regulating charging and discharging. Additionally, many fleet management systems now include thermal management features, ensuring batteries are charged within their optimal temperature range - a key factor in preventing heat-related damage.
Emerging battery chemistries are also making a difference. Lithium Iron Phosphate (LFP) batteries, for instance, are becoming more popular due to their safety, longer lifespan, and lower production costs, although they have a lower energy density compared to NMC batteries. Looking ahead, solid-state batteries are being developed to increase energy density and extend the range of electric trucks. Fleet operators may even adopt different battery types for specific tasks, such as sodium-ion batteries for short trips and solid-state batteries for long-haul transport.
The economic impact of these advancements is considerable. Since 2010, battery costs have dropped by an astounding 90%, from US$1,400 per kilowatt-hour to just US$140 per kilowatt-hour in 2023. McKinsey & Company predicts that zero-emission truck costs could decrease by as much as 30% in the near future. A noteworthy example is Amplify Cell Technologies, a joint venture by Daimler Truck, Paccar, and Accelera by Cummins. The company began constructing a 21 GWh factory in Mississippi in mid-2024, with production slated for 2027. They aim to produce commercial battery cells for medium- and heavy-duty vehicles, potentially reducing battery costs to as low as US$30 per kilowatt-hour.
"We see different battery chemistries and technologies allowing us to take almost half the cost of the battery pack. We see significant improvements in speed of charging and costs going down much faster than projected." - Moritz Rittstieg, Partner, McKinsey & Company
These advancements not only reduce maintenance costs but also extend the lifespan of EVs, making them an increasingly attractive option for fleets.
Fleet Management Implications in the UK
The advancements in electric vehicle (EV) technology are transforming fleet management in the UK, offering new opportunities for optimising vehicle lifecycles and reducing costs. Improved battery performance, in particular, is reshaping how fleet managers approach vehicle replacement and operational strategies.
Fleet Replacement Cycles
Thanks to better battery longevity, fleet managers can now extend vehicle lifecycles beyond the traditional three-to-four-year replacement schedules. Modern EV batteries maintain their health over significantly longer distances, with some estimates suggesting they could last up to 20 years. This means fleets can potentially keep EVs in operation for five to seven years or more, depending on usage patterns.
"With these higher levels of sustained health, batteries in the latest EV models will comfortably outlast the usable life of the vehicle and will likely not need to be replaced." - Aaron Jarvis, associate vice-president, sales and business development, UK & Ireland, at Geotab
Ownership Costs and Efficiency
Longer-lasting batteries bring substantial financial advantages. Over their lifespan, EVs can save UK fleets approximately £12,000 per vehicle. These savings are driven by reduced maintenance needs and the extended life of EV batteries. Interestingly, high-use EVs show similar battery degradation rates to those with lower use, as long as they stay within their typical daily range. Additionally, the introduction of battery health certificates in the used EV market is boosting residual values, further improving the total cost of ownership.
These cost efficiencies not only benefit fleet budgets but also align with broader environmental goals, making EVs an appealing choice for both economic and sustainability reasons.
Meeting Environmental Goals
Improved battery durability also plays a key role in helping fleets meet the UK's decarbonisation targets. Electric cars in the UK are typically driven around 124,000 miles during their lifetime. With reduced degradation, EVs have a longer window to offset the emissions generated during their production. Moreover, longer-lasting batteries mean fewer replacements, which reduces the overall environmental footprint of fleet operations.
"Despite higher initial emissions from production, a long-lasting electric vehicle can quickly offset its carbon footprint, contributing to the fight against climate change – making them a more sustainable long-term option." - Robert Elliott, Professor of Economics at the University of Birmingham
With these advancements, fleet managers can confidently plan their transition to electric vehicles, knowing that improved battery performance supports both operational efficiency and environmental goals. By combining these insights with advanced fleet monitoring systems - like those from GRS Fleet Telematics - UK fleets can achieve optimal performance while staying on track with sustainability objectives.
Monitoring Tools and Technologies for Battery Health
As the number of electric vehicle (EV) fleets grows across the UK, having advanced monitoring systems in place is key to keeping batteries in good shape and avoiding expensive breakdowns. Modern telematics platforms gather real-time data on battery usage, charging habits, and wear-and-tear rates, helping fleet managers plan maintenance and replacements more effectively.
Telematics-Based Monitoring Solutions
Telematics systems are at the heart of effective battery monitoring, constantly collecting and analysing data about battery performance under actual driving conditions.
"Telematics data is crucial for understanding the health of your fleet's EV batteries. With EV fleet management solutions, you can monitor real-time battery capacity, track degradation rates and make data-driven decisions to extend vehicle life".
These systems monitor essential factors like charging efficiency, energy usage, and temperature - all of which play a role in how long a battery lasts. Fleet operators benefit from real-time insights, which allow them to optimise charging schedules based on usage patterns and avoid high electricity costs during peak times. They also receive alerts about potential battery issues early on, preventing minor problems from turning into costly repairs.
For UK fleet operators looking for robust monitoring capabilities, platforms like GRS Fleet Telematics offer real-time tracking and analytics. These tools integrate seamlessly with broader fleet management systems, enhancing overall operational efficiency.
Integration with Fleet Management Systems
By combining real-time battery data with other fleet management tools, operators gain a complete picture of vehicle performance. This integration merges battery health insights with routing data, driver behaviour, and maintenance schedules, enabling smarter decisions. For example, predictive maintenance programmes can forecast service needs based on battery performance trends, reducing unplanned downtime.
Remote monitoring through smartphone apps and cloud-based platforms further simplifies fleet oversight. This is especially useful for fleets spread across multiple regions in the UK, ensuring managers can keep tabs on battery health no matter where their vehicles are operating.
With predictions suggesting that around 28% of light commercial vehicles globally will be electric by 2030, these integrated systems are becoming essential for staying competitive.
Data Analytics for Battery Management
Advanced data analytics transform raw information into practical insights, improving fleet performance and cutting costs. When paired with telematics data, analytics create a comprehensive monitoring solution to maintain battery health. AI-powered platforms analyse both historical and real-time data, spotting patterns that indicate potential battery degradation or failures before they happen.
"Analytics software builds a profile of each battery's state and forecasts its future behavior based on current and past conditions".
Real-world examples highlight the power of analytics. For instance, TWAICE software analysed data from a battery fire incident and identified a manufacturing defect that could have been predicted six months earlier. In another case, analytics helped a bus operator uncover a firmware issue in the battery management system that might have otherwise gone unnoticed.
Electra Vehicles' EVE-Ai™ Battery Fleet Analytics showcases the benefits of these tools, reporting a 143% increase in return on investment, a three-year extension in battery life, and a 40% reduction in downtime. These insights allow fleet operators to adopt smarter charging strategies, such as scheduling charges during natural downtime to avoid over-reliance on fast charging, which can speed up battery wear. Analytics also help automate buffer settings, keeping batteries within an optimal charge range of 20% to 80% during periods of inactivity.
Key Takeaways for Fleet Operators
Here's how advancements in battery technology and telematics can transform UK fleet operations for the better.
Recent studies reveal that EV batteries degrade at an average rate of just 1.8% per year. This means that modern batteries could last two decades or more. David Savage, Vice President for the UK and Ireland at Geotab, emphasises:
"With these higher levels of sustained health, batteries in the latest EV models will comfortably outlast the usable life of the vehicle and will likely not need to be replaced."
Battery health has made impressive strides in recent years, with newer models holding up far better than earlier versions. While heavy use doesn't significantly contribute to wear, frequent DC fast charging can accelerate degradation. To preserve battery life, Level 2 overnight charging is recommended.
Telematics systems play a critical role in helping fleet operators manage battery health. These tools allow businesses to monitor battery capacity, track degradation trends, and fine-tune charging schedules. They can also detect potential issues early, preventing costly repairs down the line. Providers like GRS Fleet Telematics offer solutions tailored to the UK market, providing real-time data that helps extend battery performance. By adopting best practices - such as keeping the charge level between 20% and 80%, avoiding extreme temperatures, and steering clear of deep discharge cycles - operators can maximise battery lifespan and cut fleet costs. For instance, in 2015, the Tesla Model S with liquid cooling showed a degradation rate of 2.3%, far lower than the 4.2% rate seen in the Nissan Leaf with passive air cooling.
With up to 75% of light commercial vehicles now suitable for EV replacement and continued advancements in battery technology, UK fleet operators have a clear path to transitioning to electric vehicles while enjoying significant savings over time.
FAQs
How do real-world driving conditions affect the lifespan of EV batteries compared to laboratory estimates?
Studies show that EV batteries tend to last 38–40% longer in everyday use than laboratory tests suggest. This is largely because daily driving - complete with stop-start traffic and varied power demands - is less demanding on batteries than the standardised, repetitive cycles used in lab conditions.
Although aggressive driving can speed up battery wear, most driving habits actually place less strain on the battery, helping it last longer. This insight is especially useful for fleet managers, as it points to potential savings and extended vehicle lifespans in real-world operations.
What advancements in EV battery technology are helping to reduce degradation and extend battery lifespan?
Recent advances in EV battery technology are making them last longer and perform better. Developments like solid-state batteries and the incorporation of advanced materials - such as graphene, ceramics, and polymers - are playing a key role in reducing wear from frequent charging. These materials improve the battery's stability and slow down chemical wear and tear over time.
On top of that, enhancements in electrolyte formulations and separator technology are addressing challenges like hydrogen build-up, which can speed up battery ageing. Thanks to these improvements, today's EV batteries can now last over 20 years or cover more than 200,000 miles, providing fleet operators with more dependable and cost-effective solutions.
How can fleet operators use telematics to improve EV battery performance and cut costs?
Fleet operators can use telematics to keep tabs on real-time battery health, observe charging patterns, and evaluate driver behaviour. These insights allow for smarter maintenance strategies and well-planned charging schedules, which can cut down on battery wear and help batteries last longer.
Research shows that EV batteries typically degrade by about 1.8% per year. By using telematics to make battery usage more efficient, fleet managers can slow this process, boost vehicle dependability, and save a considerable amount of money in the long run. It also makes it easier to plan for battery replacements and manage fleets over the long term.
