The new government’s plans on used electric vehicle (EV) battery health checks were discussed at July’s meeting of the Vehicle Remarketing Association (VRA), held at Cox Automotive in Bruntingthorpe.
Abdul Chowdhury, head of vehicle policy at the Office for Zero Emissions Vehicles, said that the principles had been outlined in Labour’s Automotive Sector Plan, published in October 2023, and highlighted the Government’s work to date on the United Nations Global Technical Regulation Number 22 on EV batteries (GTR 22).
He said: “GTR 22 provides the requirement for a battery state of health monitor which is in an easily accessible manner, such as through the vehicle’s dashboard. It also details minimum performance standards for EV batteries, which have already been incorporated into UK regulations through the ZEV mandate’s warranty requirements.”
The VRA meeting heard a wide ranging discussion featuring a range of battery health check experts from organisations including Altelium, Aviloo, the Car Remarketing Association Europe (CARA) and ClearWatt.
CARA have already introduced a European battery health check standard and Roland Gagel, workshop lead for battery health, reported on his organisation’s experiences: “The importance of a battery health check is unquestionable. The question is about whether the battery health check remains an add-on for the consumer when they buy the car like today, or becomes more of standard component that is included whenever anyone buys an EV. We believe that it will become a standard component and the CARA Battery Health Check is a standard that develops in that direction.”
Matthieu Peugeot, sales manager at Aviloo, one of the CARA-approved battery health check providers, emphasised the significant impact of state of health (SoH) tests on end customers’ purchasing decisions and their price sensitivity. He said: “Currently, SoH diagnostics provided by Aviloo are considered a highly valuable add-on, with EV remarketers and buyers becoming increasingly aware of their benefits. An SoH certificate serves as an effective sales support tool and is a key factor in price-setting.
“Aviloo recently conducted a remarketing study which showed that customers all over Europe are willing to pay a minimum of €550 to €1,100 more, depending on the country, for used electric cars that come with a health check certificate from an independent provider than for used EVs without certificates.”
Patrick Cresswell, managing director at ClearWatt said that the value of battery health checks lay in the fact that the incidence of ‘dud’ EVs on the market is low but the consequences of owning one are high: “You might have to replace an entire battery or, more likely, scrap the vehicle. It’s a protection against that scale of loss.”
Alex Johns partnership lead at Altelium said that battery health checks should take place as early as possible in the remarketing cycle and be made available to everyone within that process: “That way, everyone knows the condition of the battery from the outset covering the entire path from initial vendor to end user and all intermediaries.”
Following on from the battery health discussion, Robin Brundle, director at Recyclus, talked in detail about EV battery recycling: “This is going to be a significant part of electrification. By 2030, we expect 570,000 tonnes of li-ion vehicle batteries will be recycled in the UK every year.
“It’s not just about EVs being scrapped at the end of their lives but as the result of vehicle recalls, battery faults and accidents. Especially, insurers are currently adopting a general ‘do not repair’ attitude where EV batteries are concerned.
“The good news is that the recycling techniques available for li-ion mean that all of the battery can be recycled without any use of water and with nothing going to landfill.”
The final element of the meeting was a panel discussion about the potential impact of the recent general election result on the remarketing sector featuring Lee Swinerd, director at Interpath; Alastair Cassels, automotive advisory partner at MHA; and Louise Wallis, director at Auto Strategists.
Lee said: “What is immediately encouraging is that the UK essentially hasn’t had an industrial strategy for some time and now, potentially there will be one with automotive likely to be at the heart of it. The question marks are more over the speed of delivery that Labour is able to achieve, having made some fairly big promises over growth. These kinds of strategies take time to take effect.”
Alastair added: “A big part of Labour’s industrial strategy needs to be the development of battery capacity. There remains no automotive battery production facility of any size in the UK – although there are plans – and we need to understand the issues that are stopping projects moving forwards and resolve them. Without UK battery manufacturing, there is unlikely to be any UK vehicle manufacturers.”
Louise explained that Labour governments tend to be more consumer focused and she expected this one to be even more so, given the number of marginal seats that it held: “There is likely to be a range of developments in markets outside of primary legislation as a result, using bodies such as the Financial Conduct Authority. It will be interesting to see what follows from ideas such as Consumer Duty, for example.”
The VRA meeting was attended by more than 50 members both in person and online, and Philip Nothard, chair at the VRA, said that it had covered many important areas.
“We know that used car and van buyers have serious concerns about the possibility of battery degradation and failure when they consider an EV, and battery health checks are the best potential solution to allaying those fears.
“The meeting allowed us to really drill down into the subject, looking at the pros and cons of the different technologies available, practical issues such as when and where tests are needed, how to present the information produced to trade and retail buyers, and the potential impact on vehicle values.
“Feedback from members was very positive and this is a subject to which we plan to return in the future as the used EV market grows in importance.”
He added that it would be interesting to see how Labour’s project on an official battery health check progressed over time.
“One of the recurring themes of our discussions at the meeting was that arriving at a standard measure of battery health is quite difficult – there are many ways to measure battery health and present the results, as well as question marks over which are most meaningful to consumers. The government has some quite tricky decisions to make.”
Details about attending the organisation’s events can be obtained by emailing info@thevra.co.uk.