How much does it cost to make an electric car battery?

I was reading one of your guys’ responses to another question about replacing an electric car’s battery. The article said that it almost always costs thousands of dollars to replace one of these batteries. Why? Are they that expensive for carmakers to make?

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Answer provided by
Jason Crosby
Answered on May 05, 2022
You’re definitely on the right track. Electric car batteries can cost up to $20,000, as most of the vehicle’s costs go toward the battery in the case of EVs. It all depends on the quality of the battery, meaning its range and durability, as well as its size. A car with a 300-mile battery range, and a car with a 500-mile range are going to have significantly different sized batteries and MSRPs.
The good thing, as the article you mentioned might have pointed out, is that an electric car battery doesn’t die after 2-3 years as in an ICE-powered car. EV batteries can last up to 20 years, meaning that they’re roughly equivalent to a traditional car’s transmission in terms of repair costs and longevity. And if you’re wondering why electric car batteries are so expensive, it’s because of the components they use—precious metals like lithium and gold are needed in order to create an electric car battery.
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