For many electric vehicles, there is no way to repair or assess even slightly damaged battery packs after accidents, forcing insurance companies to write off cars with only a few kilometres on the clock — leading to higher premiums and undercutting gains from going electric.
Those battery packs are now piling up in scrapyards in some countries, a previously unreported and expensive gap in what was supposed to be a "circular economy".
"We're buying electric cars for sustainability reasons," said Matthew Avery, research director at automotive risk intelligence company Thatcham Research. "But an EV isn't very sustainable if you've got to throw the battery away after a minor collision."
Battery packs can cost tens of thousands of dollars and represent up to 50 per cent of an EV's price tag, often making it uneconomical to replace them.
While some carmakers such as Ford Motor and General Motors said they have made battery packs easier to repair, Tesla Inc has taken the opposite tack with its Texas-built Model Y, whose new structural battery pack has been described by experts as having "zero repairability".
Tesla did not respond to a request for comment.
A Reuters search of EV salvage sales in the US and Europe shows a large portion of low-mileage Teslas, but also models from Nissan Motor Co, Hyundai Motor Co, Stellantis, BMW, Renault and others.
EVs constitute only a fraction of vehicles on the road, making industry-wide data hard to come by, but the trend of low-mileage zero-emission cars being written off with minor damage is growing. Tesla's decision to make battery packs "structural" — part of the car's body — has allowed it to cut production costs but risks pushing those costs back to consumers and insurers.
Tesla has not referred to any problems with insurers writing off its vehicles. But in January, chief executive Elon Musk said premiums from third-party insurance companies "in some cases were unreasonably high."
Unless Tesla and other carmakers produce more easily repairable battery packs and provide third-party access to battery cell data, already high insurance premiums will keep rising as EV sales grow and more low-mileage cars get scrapped after collisions, insurers and industry experts said.
"The number of cases is going to increase, so the handling of batteries is a crucial point," said Christoph Lauterwasser, managing director of the Allianz Centre for Technology.
Mr Lauterwasser noted EV battery production emits far more carbon dioxide than fossil-fuel models, meaning EVs must be driven for thousands of kilometres before they offset those extra emissions.
"If you throw away the vehicle at an early stage, you've lost pretty much all advantage in terms of carbon dioxide emissions," he said.
Most carmakers say their battery packs are repairable, though few seem willing to share access to the relevant data. Insurers, leasing companies and car repair shops are already fighting with carmakers in the EU over access to lucrative connected-car data.
Mr Lauterwasser said access to EV battery data is part of that fight. Allianz has seen scratched battery packs where the cells inside are likely undamaged, but without diagnostic data it has to write off those vehicles.
Ford and GM tout their newer, more repairable packs. But the new, large 4,680 cells in the Model Y made at Tesla's Austin plant Texas are glued into a pack that forms part of the car's structure and cannot be easily removed or replaced, experts said.
In January, Mr Musk said the carmaker had been making design and software changes to its vehicles to lower repair costs and insurance premiums.
The company also offers its own insurance product in a dozen US states to Tesla owners at lower rates.
Insurers and industry experts also note that EVs, because they are loaded with all the latest safety features, so far have had fewer accidents than traditional cars.
Sandy Munro, head of Michigan-based Munro & Associates, which tears down vehicles and advises manufacturers on how to improve them, said the Model Y battery pack had "zero repairability".
"A Tesla structural battery pack is going straight to the grinder," he said.
EV battery problems also expose a hole in the green "circular economy" touted by carmakers.
At Synetiq, the UK's largest salvage company, head of operations Michael Hill said that over the past 12 months the number of EVs in the isolation bay — where they must be checked to avoid fire risk — at the firm's Doncaster yard had soared from perhaps a dozen every three days to up to 20 per day.
"We've seen a really big shift and it's across all manufacturers," Mr Hill said.
The UK currently has no EV battery recycling facilities, so Synetiq has to remove the batteries from written-off cars and store them in containers. Mr Hill estimated at least 95 per cent of the cells in the hundreds of EV battery packs — and thousands of hybrid battery packs — Synetiq has stored at Doncaster are undamaged and should be reused.
It already costs more to insure most EVs than traditional cars.
According to online brokerage Policygenius, the average US monthly EV insurance payment this year is $206, or 27 per cent more than for a combustion-engine model.
According to Bankrate, an online publisher of financial content, US insurers know that "if even a minor accident results in damage to the battery pack ... the cost to replace this key component may exceed $15,000".
A replacement battery for a Tesla Model 3 can cost up to $20,000 for a vehicle that sells for about $43,000 but depreciates quickly over time.
Andy Keane, UK commercial motor product manager at French insurer AXA, said expensive replacement batteries "may sometimes make replacing a battery unfeasible".
There are a growing number of repair shops specialising in repairing EVs and replacing batteries. In Phoenix, Arizona, Gruber Motor Co has focused mostly on replacing batteries in older Tesla models.
But insurers cannot access Tesla's battery data, so they have taken a cautious approach, owner Peter Gruber said.
"An insurance company is not going to take that risk because they're facing a lawsuit later on if something happens with that vehicle and they did not total it," he said.
The British government is funding research into EV insurance "pain points" led by Thatcham, Synetiq and insurer LV=.
Recently adopted EU battery regulations do not specifically address battery repairs, but they did ask the European Commission to encourage standards to "facilitate maintenance, repair and repurposing", a commission source said.
Insurers said they know how to fix the problem — make batteries in smaller sections, or modules, that are simpler to fix, and open diagnostics data to third parties to determine battery cell health.
Individual US insurers declined to comment.
But Tony Cotto, director of auto and underwriting policy at the National Association of Mutual Insurance Companies, said "consumer access to vehicle-generated data will further enhance driver safety and policyholders' satisfaction ... by facilitating the entire repair process".
Lack of access to critical diagnostic data was this month raised in a class action filed against Tesla in a US District Court in California.
Insurers said failure to act would cost consumers.
EV battery damage makes up only a few per cent of Allianz's motor insurance claims, but 8 per cent of claims costs in Germany, Mr Lauterwasser said. Germany's insurers pool data on vehicle claims data and adjust premium rates annually.
"If the cost for a certain model gets higher, it will raise premium levels because the rating goes up," he added.
Jetour T1 specs
Engine: 2-litre turbocharged
Power: 254hp
Torque: 390Nm
Price: From Dh126,000
Available: Now
Petrarch: Everywhere a Wanderer
Christopher Celenza,
Reaktion Books
ONCE UPON A TIME IN GAZA
Starring: Nader Abd Alhay, Majd Eid, Ramzi Maqdisi
Directors: Tarzan and Arab Nasser
Rating: 4.5/5
The Voice of Hind Rajab
Starring: Saja Kilani, Clara Khoury, Motaz Malhees
Director: Kaouther Ben Hania
Rating: 4/5
Killing of Qassem Suleimani
Mohammed bin Zayed Majlis
Real estate tokenisation project
Dubai launched the pilot phase of its real estate tokenisation project last month.
The initiative focuses on converting real estate assets into digital tokens recorded on blockchain technology and helps in streamlining the process of buying, selling and investing, the Dubai Land Department said.
Dubai’s real estate tokenisation market is projected to reach Dh60 billion ($16.33 billion) by 2033, representing 7 per cent of the emirate’s total property transactions, according to the DLD.
The language of diplomacy in 1853
Treaty of Peace in Perpetuity Agreed Upon by the Chiefs of the Arabian Coast on Behalf of Themselves, Their Heirs and Successors Under the Mediation of the Resident of the Persian Gulf, 1853
(This treaty gave the region the name “Trucial States”.)
We, whose seals are hereunto affixed, Sheikh Sultan bin Suggar, Chief of Rassool-Kheimah, Sheikh Saeed bin Tahnoon, Chief of Aboo Dhebbee, Sheikh Saeed bin Buyte, Chief of Debay, Sheikh Hamid bin Rashed, Chief of Ejman, Sheikh Abdoola bin Rashed, Chief of Umm-ool-Keiweyn, having experienced for a series of years the benefits and advantages resulting from a maritime truce contracted amongst ourselves under the mediation of the Resident in the Persian Gulf and renewed from time to time up to the present period, and being fully impressed, therefore, with a sense of evil consequence formerly arising, from the prosecution of our feuds at sea, whereby our subjects and dependants were prevented from carrying on the pearl fishery in security, and were exposed to interruption and molestation when passing on their lawful occasions, accordingly, we, as aforesaid have determined, for ourselves, our heirs and successors, to conclude together a lasting and inviolable peace from this time forth in perpetuity.
Taken from Britain and Saudi Arabia, 1925-1939: the Imperial Oasis, by Clive Leatherdale
Key facilities
- Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
- Premier League-standard football pitch
- 400m Olympic running track
- NBA-spec basketball court with auditorium
- 600-seat auditorium
- Spaces for historical and cultural exploration
- An elevated football field that doubles as a helipad
- Specialist robotics and science laboratories
- AR and VR-enabled learning centres
- Disruption Lab and Research Centre for developing entrepreneurial skills
MATCH INFO
Uefa Champions League final:
Who: Real Madrid v Liverpool
Where: NSC Olimpiyskiy Stadium, Kiev, Ukraine
When: Saturday, May 26, 10.45pm (UAE)
TV: Match on BeIN Sports
Killing of Qassem Suleimani
GOLF’S RAHMBO
- 5 wins in 22 months as pro
- Three wins in past 10 starts
- 45 pro starts worldwide: 5 wins, 17 top 5s
- Ranked 551th in world on debut, now No 4 (was No 2 earlier this year)
- 5th player in last 30 years to win 3 European Tour and 2 PGA Tour titles before age 24 (Woods, Garcia, McIlroy, Spieth)
UAE currency: the story behind the money in your pockets
BMW M5 specs
Engine: 4.4-litre twin-turbo V-8 petrol enging with additional electric motor
Power: 727hp
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Transmission: 8-speed auto
Fuel consumption: 10.6L/100km
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Price: From Dh650,000
GAC GS8 Specs
Engine: 2.0-litre 4cyl turbo
Power: 248hp at 5,200rpm
Torque: 400Nm at 1,750-4,000rpm
Transmission: 8-speed auto
Fuel consumption: 9.1L/100km
On sale: Now
Price: From Dh149,900
Boulder shooting victims
• Denny Strong, 20
• Neven Stanisic, 23
• Rikki Olds, 25
• Tralona Bartkowiak, 49
• Suzanne Fountain, 59
• Teri Leiker, 51
• Eric Talley, 51
• Kevin Mahoney, 61
• Lynn Murray, 62
• Jody Waters, 65
10 tips for entry-level job seekers
- Have an up-to-date, professional LinkedIn profile. If you don’t have a LinkedIn account, set one up today. Avoid poor-quality profile pictures with distracting backgrounds. Include a professional summary and begin to grow your network.
- Keep track of the job trends in your sector through the news. Apply for job alerts at your dream organisations and the types of jobs you want – LinkedIn uses AI to share similar relevant jobs based on your selections.
- Double check that you’ve highlighted relevant skills on your resume and LinkedIn profile.
- For most entry-level jobs, your resume will first be filtered by an applicant tracking system for keywords. Look closely at the description of the job you are applying for and mirror the language as much as possible (while being honest and accurate about your skills and experience).
- Keep your CV professional and in a simple format – make sure you tailor your cover letter and application to the company and role.
- Go online and look for details on job specifications for your target position. Make a list of skills required and set yourself some learning goals to tick off all the necessary skills one by one.
- Don’t be afraid to reach outside your immediate friends and family to other acquaintances and let them know you are looking for new opportunities.
- Make sure you’ve set your LinkedIn profile to signal that you are “open to opportunities”. Also be sure to use LinkedIn to search for people who are still actively hiring by searching for those that have the headline “I’m hiring” or “We’re hiring” in their profile.
- Prepare for online interviews using mock interview tools. Even before landing interviews, it can be useful to start practising.
- Be professional and patient. Always be professional with whoever you are interacting with throughout your search process, this will be remembered. You need to be patient, dedicated and not give up on your search. Candidates need to make sure they are following up appropriately for roles they have applied.
Arda Atalay, head of Mena private sector at LinkedIn Talent Solutions, Rudy Bier, managing partner of Kinetic Business Solutions and Ben Kinerman Daltrey, co-founder of KinFitz
Key recommendations
- Fewer criminals put behind bars and more to serve sentences in the community, with short sentences scrapped and many inmates released earlier.
- Greater use of curfews and exclusion zones to deliver tougher supervision than ever on criminals.
- Explore wider powers for judges to punish offenders by blocking them from attending football matches, banning them from driving or travelling abroad through an expansion of ‘ancillary orders’.
- More Intensive Supervision Courts to tackle the root causes of crime such as alcohol and drug abuse – forcing repeat offenders to take part in tough treatment programmes or face prison.
What sanctions would be reimposed?
Under ‘snapback’, measures imposed on Iran by the UN Security Council in six resolutions would be restored, including:
- An arms embargo
- A ban on uranium enrichment and reprocessing
- A ban on launches and other activities with ballistic missiles capable of delivering nuclear weapons, as well as ballistic missile technology transfer and technical assistance
- A targeted global asset freeze and travel ban on Iranian individuals and entities
- Authorisation for countries to inspect Iran Air Cargo and Islamic Republic of Iran Shipping Lines cargoes for banned goods
Unresolved crisis
Russia and Ukraine have been locked in a bitter conflict since 2014, when Ukraine’s Kremlin-friendly president was ousted, Moscow annexed Crimea and then backed a separatist insurgency in the east.
Fighting between the Russia-backed rebels and Ukrainian forces has killed more than 14,000 people. In 2015, France and Germany helped broker a peace deal, known as the Minsk agreements, that ended large-scale hostilities but failed to bring a political settlement of the conflict.
The Kremlin has repeatedly accused Kiev of sabotaging the deal, and Ukrainian officials in recent weeks said that implementing it in full would hurt Ukraine.
CONFIRMED%20LINE-UP
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Lexus LX700h specs
Engine: 3.4-litre twin-turbo V6 plus supplementary electric motor
Power: 464hp at 5,200rpm
Torque: 790Nm from 2,000-3,600rpm
Transmission: 10-speed auto
Fuel consumption: 11.7L/100km
On sale: Now
Price: From Dh590,000
Killing of Qassem Suleimani
