Real-time vehicle data to extend battery life

With an average price of $151 per kWh in 2022, as estimated by Bloomberg (Source), lithium-ion car batteries remain expensive, even though prices have fallen by nearly 80% since 2013. As a result, the battery can account for up to 50% of the total price of a new electric car—and potentially even more as the vehicle ages. It is therefore not surprising that leasing companies, which are highly sensitive to the issue of residual value, pay very close attention to the battery’s performance. 

A damaged battery or the risk of a legal dispute following a settlement

Fortunately, a complete battery replacement is rarely necessary and remains the exception. In a fleet of 15,000 vehicles tracked by the U.S. website Recurrent, the battery was replaced during its lifetime in only 1.5% of the vehicles (Source). Nevertheless, a battery’s capacity degrades progressively over its lifetime, depending on how the user charges and discharges it. This raises a crucial question when reselling the vehicle: How should one address the potential discrepancy between the vehicle’s range as stated in the spec sheet and its actual range? Can a dealer afford to risk a legal dispute with a dissatisfied buyer?

Therefore, it is necessary to be able to measure a battery’s State of Health (SoH) before reselling it in order to provide the buyer with an accurate estimate of the battery’s remaining life. To this end, the manufacturer can perform a detailed diagnostic test, which is subject to a fee. However, various providers also offer tools or devices that connect to the vehicle’s OBD port. After a full charge and subsequent normal use of the vehicle until it is nearly fully discharged within a specific period, the provider is able to collect and analyze the data transmitted by the device to estimate the battery’s condition and maximum remaining range. One can imagine that this multi-day analysis process is hardly compatible with the demands of the used car trade, which relies on rapid inventory turnover and process optimization. And even if it were, once the battery’s loss of efficiency has been measured, the dealer can only lower the resale price and thus determine their loss in residual value and profit margin. But conversely, shouldn’t prevention be better than cure?

Prevention rather than cure

Maintaining battery capacity must play a crucial role throughout the entire term of the lease agreement, not just when the vehicle is returned. Battery performance depends largely on how the driver uses the vehicle, and there are numerous factors that can affect battery performance. These include excessive use at charge levels above 80% or below 20%. According to chargemap.org, it is recommended to stay within the 20–80% charge range as often as possible. Fast charging should also not be overused, as it stimulates the battery cells too aggressively. chargemap.org recommends parking the vehicle in a covered shelter and preheating the battery before charging and before starting in cold weather.

The driver must follow these instructions throughout the entire term of the contract to ensure that battery performance is maintained for as long as possible. The lessor must verify that these instructions are being followed. To do so, the lessor must have continuous, real-time access to the vehicle’s technical data. Most new cars come equipped with a telematics device that transmits technical data to the manufacturer at high frequency. Manufacturers make this data available to vehicle owners for a fee, which can enable leasing companies to collect the raw data and then harmonize, process, and utilize it. However, this time-consuming work of collection and processing—especially when it involves multiple different manufacturers—remains far removed from the core business of leasing companies
. 

Echoes, a neutral server and data operator

Here, Echoes—as a neutral, manufacturer-independent server—offers a value proposition that meets the evolving needs of leasing companies. By collecting vehicle technical data from all manufacturers, Echoes is able to compile and standardize all this information to present it consistently through its dedicated interfaces, Carlocate and Carfleet. This allows leasing companies to access all the information critical for managing their vehicles on the road
in real time within a single tool: location, mileage, battery charge level, mechanical alerts, accident alerts, etc. The data is a single tool.  

Even better: For electric vehicles, Echoes also collects information about every charging session, such as power, duration, and the amount of energy charged. This allows you to generate a weekly or monthly charging report for each vehicle. It is then very easy to analyze this report, identify any potential bad practices, and contact customers to discuss their charging habits and raise their awareness about proper battery usage. 

As fleets become increasingly electrified, fleet operators and rental companies will benefit from implementing charging policies to raise user awareness of best charging practices. In this context, it makes sense to track vehicle data in real time in order to define realistic charging policies and monitor their proper implementation.