Key Insights

• Average degradation rate: The average annual electric vehicle degradation rate is 2.3%.
• Power: High-power DC fast charging (>100kW) is the single largest stressor, leading to degradation rates up to twice that of the low power charging group (3.0% vs 1.5% per year).
• Climate:Hot climates impose a penalty on battery life, with vehicles operating in hot conditions degrading 0.4% faster per year than those in mild climates.
• Utilization:The increase in degradation from high daily use is a measurable but worthwhile trade-off for the gains in fleet productivity and ROI.
• State of charge (SOC):For most EV use, there’s no need to worry about avoiding fully charging or emptying the battery. Degradation only speeds up when vehicles spend over 80% of their total time at or near-full or nearly empty charge levels.