If you’ve ever wondered why car batteries are so expensive, you’re not alone!
Several factors have contributed to the high costs of new batteries. From raw material shortages to increasing technological demands, a lot goes into the price of a new battery.
Read on to explore these factors and how to save money on your next battery replacement.
This Article Contains:
- Why Are Car Batteries So Expensive?
- What Is the Average Cost of a Car Battery?
- 3 Nifty Tips to Save Money on a Car Battery
- How to Extend the Life of Your Battery
Why Are Car Batteries So Expensive?
Whether you own a General Motors or Volkswagen AG vehicle, here are the key factors that have led to a surge in car battery prices:
1. Expensive Materials and Labor Costs
Over the last few years, the battery replacement cost has soared due to skyrocketing prices of materials and labor.
The increase in demand for electric vehicles is a significant contributor to this. The process and cost involved in lithium mining have impacted the prices of lithium batteries. Likewise, the higher costs of lead, cobalt, and plastic have added to lead acid battery costs.
Also, many car and truck batteries, including those requiring lithium, are made in the United States, where labor costs have increased.
However, the surge in electric car battery production in China and the continuous advancement in technology should help bring down these costs in the future.
2. Availability of Different Battery Types
Internal combustion engine cars (ICE vehicles) generally use one of two types of batteries: flooded lead-acid or Absorbed Glass Mat (AGM). A flooded lead-acid battery has been the go-to choice for years and is usually more affordable than an AGM battery.
However, AGMs are becoming more popular as car manufacturers prefer them for their longer lifespan and higher cold cranking amps (CCAs). This is leading to a higher battery replacement cost.
What about electric cars?
A lithium-ion battery found in an electric vehicle tends to be far more expensive than that used in an internal combustion engine (ICE vehicles). In fact, EV battery costs can range up to $20,000.
Although lithium-ion batteries tend to last upwards of a decade, when they fail, EV owners would rather invest in a new vehicle than replace the electric vehicle battery.
To counter this, lithium-ion phosphate (LFP batteries) are increasingly being used in electric vehicles. While they can be more affordable, they don’t have as much battery storage as a regular Lithium-ion battery. As such, LFP batteries are often found in lower-range models.
3. Premium Prices for Branded Batteries
Like any other product, the battery brand can significantly affect prices.
For car owners, investing in popular, reputable brands may have a higher battery cost but often offer improved performance and longer warranties. This is especially true for the quality of each battery cell, as well-known brands ensure each cell meets high standards.
4. Technological Advancements
Today’s cars, especially EVs, rely on lithium-ion batteries with a high energy capacity for powering various systems and features. As such, a lithium-ion battery requires advanced materials to meet these demands.
Moreover, the research and development costs involved in manufacturing advanced battery technology further escalate the battery price. This means that although EV drivers benefit from cutting-edge battery cell technology, the costs can significantly impact their overall EV battery costs.
5. Need for Bigger Battery Size and Power
The bigger the battery storage, the higher the price tag. That’s why larger lead-acid batteries with higher cold cranking amps usually cost more.
Likewise, a larger-capacity electric car battery can store more energy, allowing for longer driving distances between charges. However, producing these batteries involves more energy cells, higher-quality materials, and more complex assembly processes, which drive up costs.
6. Stricter Government Regulations
In the early 2010s, the Environmental Protection Agency (EPA) introduced new regulations for battery makers, emphasizing proper production and distribution, disposal, and battery recycling.
To accommodate these more environmentally friendly regulations, suppliers had to invest in new manufacturing, smelting, and battery recycling facilities. Consequently, some companies raised battery prices to recover additional costs from car owners.
7. Supply Chain and Logistical Issues
Supply chain issues have significantly increased the price of car battery replacement. The scarcity of raw materials like lithium, cobalt, and nickel has increased costs for battery pack makers, who pass these costs on to the customer.
Additionally, logistical challenges like shipping delays, higher freight costs, and the COVID-19 pandemic further exacerbated these costs.
8. Economic Factors
Various macroeconomic factors have also contributed to the surge in the cost of batteries, especially lithium-ion batteries, in recent years. For example, the 2020-2023 global chip shortage played a significant role in driving up the battery price. This impacted EV drivers by increasing the overall cost of an electric car.
Now that we understand the factors driving up car battery prices, let’s look at what you can expect to pay on average for a car battery.
What Is the Average Cost of a Car Battery?
Plan to spend between $185 and $500 on a new battery. The average cost of a standard flooded lead acid battery can be between $185 and $300, while an AGM battery can cost between $250 and $400.
An electric vehicle battery is considerably more expensive, ranging from about $4,000 to $20,000 for a Tesla battery.
Labor costs can range from $50 to $100 for a standard car battery, depending on the dealership and the type of car. For an electric vehicle, expect labor costs between $850 to $2,000.
Now that we have an idea of the average cost of a car battery, let’s explore some practical tips to help you save money on your next purchase.
3 Nifty Tips to Save Money on a Car Battery
Here are three simple ways to help you save money and get the most value for your investment:
1. Replace a Bad Battery ASAP
A faulty battery pack can start causing issues with various electrical components in your vehicle, such as the electric windows, headlights, and radio. You can avoid additional repairs by replacing the old battery before it starts putting stress on these components.
Additionally, a bad battery can cause the car to backfire by disrupting the spark plug operation. If left unchecked, it can damage the engine and catalytic converter down the line.
2. Consider the Warranty
Spending a few hundred dollars on a new battery sounds like a lot, but most batteries have a warranty covering them for a few years. So, even though a Tesla battery with a longer warranty may cost more upfront, it can save you money in the long run.
3. Shop Around
One of the most effective ways to save money on a new battery is to shop around and speak to several dealers before purchasing. Different dealerships may charge different prices for a battery pack, which can help you avoid overpaying.
Some dealers may also have special promotions, discounts, or sales that can further reduce the battery cost.
Next, let’s delve into some effective strategies to keep your battery in top shape.
How to Extend the Life of Your Battery
Here are a few best practices to reduce battery degradation on a Tesla, General Motors, Volkswagen AG, or any other car:
- Drive regularly and avoid short trips
- Keep the battery terminals clean
- Mind the fluid levels
- Invest in a good-quality car battery charger
- Don’t let your car sit for too long
Avail Affordable Car Battery Replacement with AutoNation Mobile Service
Many factors have contributed to the increased price of car batteries, but a little preventative maintenance can reduce battery degradation.
And, when it’s time to invest in a new battery, consult reputable auto experts like AutoNation Mobile Service.
We’re a mobile auto repair solution offering convenient online bookings and a 12-month, 12,000-mile warranty on all repairs.
Contact us, and we’ll replace your old battery with a brand-new car battery directly from your driveway!