Not ESG-Friendly: Insurers Junk Entire EVs For Minor Accidents

An EV's battery is not sustainable if it has to be thrown away after a minor collision.

It is not surprising that


An article published by the magazine reveals that electric vehicles may not be as eco-friendly as automakers believe. Insurance companies could also decide to scrap an entire car if the battery pack is damaged or scratched.

"We are buying electric cars to support sustainability."

Matthew Avery, research manager at Thatcham Research, stated that.

Avery pointed out that

"An EV isn’t very sustainable if the battery has to be thrown away after a minor accident."

The cost of a Tesla battery pack is tens or thousands of dollars, which is a significant portion of the vehicle's total price. Insurers have concluded that it is not economically feasible to replace damaged battery packs.

To reduce costs, many automotive manufacturers, including Tesla have made the battery pack a structural component of their cars. However, they have transferred the cost to consumers and insurance companies when the batteries need to be changed.

Unless automakers make more repairable batteries, it will lead to a greater number of low-mileage EVs being scrapped after collisions.

Christoph Lauterwasser is the managing director of Allianz Center for Technology. This research institute is owned by Allianz.

Lauterwasser claims that EV batteries produce significantly more CO2 than traditional fossil-fuel models. Therefore, if these batteries are discarded with low mileage, it undermines the goal of promoting environmentally-friendly practices.

He stated, "If you dispose of the vehicle early, you lose pretty much all your advantage in terms CO2 emissions."

Sandy Munro, the Michigan-based Munro & Associates head, stated that the Model Y's battery pack is "zero repairability".

Munro stated that a Tesla structural battery pack was going straight to the grinder.

The EV revolution and green "circular economy", as carmakers, politicians and NGOs proclaim, is a failure. Comparing to traditional petrol-powered cars, these EVs are even worse for the environment.