How much does it cost to replace an EV battery?

“How much does an EV battery cost to replace?” is a common question asked by drivers who are considering going electric – and by those skeptical about electric cars in Australia. 

And it’s a fair question – as fair as it is to ask, “How much does it cost to replace a car engine?” ;

According to the latest data from Canstar, the cost to replace an engine can range from $3000-$22,000 on average, depending on the make and model of the car. 

As Canstar notes, there are also a wide range of other expensive repairs for internal combustion engine (ICE) cars that don't apply to EVs, such as replacing cylinders ($8000+), transmission repairs ($200 – $5000+), replacing head gaskets ($1200 – $3000+) and camshafts ($1200 – $1500+). Hybrid specific car parts (like inverters) can cost $4000-7000, says Canstar. 

These, plus the added maintenance and servicing costs of an ICE vehicle can all add up over the lifetime of a car. Because there are fewer moving parts, there are less costs associated with maintaining an EV.

But how much do EV batteries cost to replace? How often do EV batteries need replacing? And, how much will new EV batteries cost in the future? 

Do EV batteries last longer than the warranty?

Most modern EV batteries last a lot longer than many people realise. EV batteries are designed to use sophisticated battery management software and cooling technology to ensure longevity.  

If you’re thinking of buying a new EV today, remember that the cost of batteries will continue to drop, and most new EVs come with an eight-year/160,000km warranty (some even longer!) and the majority of car manufacturers guarantee at least 70-80 per cent capacity after 8 years.  

Studies have also shown that degradation is commonly less than this, and EV batteries are perfectly capable of being used past this ‘use by date’, albeit with a slightly shorter driving range. 

How do I know if a used EV’s battery will need replacement? 

How much does a new EV battery cost?

Early concerns about high battery replacement costs are also diminishing as the cost of making batteries drops.  Historically the cost of replacing an EV battery has been half the as-new value of the car. But EV data group Recurrent Auto shows that by 2030, this proportion could drop to just 15 per cent of the value of the vehicle. 

A real-life example of an EV battery replacement was for a 60kWh lithium-iron-phosphate (LFP) battery made in China for a Tesla Model 3 RWD, for just over $14,000 excluding installation costs. This invoice was issued in 2022, when the volume-weighted average lithium-ion battery pack cost US$166/kWh (AU$255/kWh at today’s rates) according to the latest 2024 data from BloombergNEF.

The data also showed that battery pack costs dropped by 30 per cent from 2022 to to US$115/kWh (AU$176/kWh) in 2024 across all energy storage industries, and to US$97/kWh for EV batteries alone in China (equal to AU$148/kWh at today’s rates). Goldman Sachs predicted in mid-2025 that battery pack prices will drop even further by 2030, forecasting a US$60/kWh pack price – down 64 per cent from 2022 prices. 

 
Source: Mobility Portal EU 


It’s difficult to say if these price drops will be wholly passed on in a (relatively) small volume car market like Australia, particularly given the extra transport and logistics costs that go hand in hand with the tyranny of distance. However, projecting future battery replacement costs by applying these battery pack price drop figures would look something like this: 

Projected battery replacement costs, $AU 

Calculations based on BNEF global forecasts, November 2024. *Prices likely to be lower due to cheaper LFP prices 

Sources:

• The most expensive car parts to repair | Canstar 
• Lithium-Ion Battery Pack Prices Hit Record Low of $139/kWh | BloombergNEF 
• China’s Batteries Are Now Cheap Enough to Power Huge Shifts | Colin McKerracher, July 9, 2024, BloombergNEF 
• Lithium-Ion Battery Pack Prices See Largest Drop Since 2017, Falling to $115 per Kilowatt-Hour: BloombergNEF 
• EV prices are coming down: but how fast, and why? | Bridie Schmidt, 16 August, 2024, The NRMA 
• Goldman Sachs: “Battery Prices to Fall Below $60/kWh by 2030” 
• Electric Car Battery Replacement Costs | Recurrent Auto 

This article was updated on 16 January, 2024 to add exceptions to EVs with eight-year battery warranties., and to clarify battery warranties often have kilometre limits.)

This article was updated on September 9, 2024, to include updated information about falling battery costs.

This article was updated on November 17, 2025 to update data and add information about EV battery health checks.