TimLee said:
To extend a proper capacity warranty matching their design intent and stated expectations, would probably cost them around $1 billion.
They wouldn't necessarily have to replace all the batteries with new ones. In locations like California and Tennessee with temperate climate and some public charging infrastructure they could provide about the same benefit to drivers by improving and subsidizing the charging infrastructure. For someone driving the U.S. average 30 miles per day it doesn't matter on an average day if his battery has degraded to 80% capacity reducing range to 49 miles on an 80% charge. The problem of course is variability of driving distance and the days you need more than 49 miles of range. A new battery would restore your car's advertised functionality 365 days per year. Improved infrastructure could restore functionality just on those non-average days when its degraded range fell short.
I've been playing with a driving simulator to explore the interplay of car characteristics, driver requirements and preferences, and location characteristics. I started with assumptions about my area. SDG&E experimental overnight EV charging rate. Average 30 miles per day 11,000 miles per year. Blink, Chargepoint, Nissan, evGo, and EVoasis combine for overall 75% availability of L2 and 50% availability of QC, and an average session price of $7.50. In the model "availability" means available to charge for a given trip: not broken, not in use, not ICEd, not closed for the night, salesman hasn't wandered off with the only key fob; and it's either at your destination, within walking distance, or reasonably close to your route; and your schedule and available amenities nearby permit you to wait for the required charging time. Else on that day your EV fails to meet your needs and you must
Just-Drive-The-Prius.
With a new 2011 charging to 100% each night I get 3.6 days per year the car fails to meet needs, 1 QC per month, $15.54/month charging at home, $7.82/month charging in public, $23.36/month total, 2.59 cents per mile.
But wait! Charging routinely to 100% will degrade the battery faster. So charge to 80% instead, even though that means you're more likely to need expensive public charging and more likely to need to
Just-Drive-The-Prius. Note this neglects the fact that often you know ahead of time that the next day will be a busy one and so you can charge to 100%. With this change I get 7.6 days per year it fails to meet needs, 2.3 QC per month, $31.00/month total, 3.47 cents per mile.
That's with a new battery. Lets substitute a battery degraded to 80% capacity. Now the car fails 13.6 days per year, with 3.6 QC per month, $39.38/month total cost, 4.55 cents per mile. So in order to provide relief from the effects of the degraded battery we would need to cut the failure days roughly in half while reducing monthly charging cost by $8.
One way Nissan could do this would be if the overall QC availability were raised from 50% to 75% with the average QC price lowered to $4.00. That gives 7.6 failed days per year and a monthly total cost of $31.41. Another way to do it would be if they could raise the overall L2 availability from 75% to 90% and cut the average QC price from $7.50 to $4.75. Then failed days per year would be 7.6 and total monthly cost would be $31.09.
It wouldn't be simple to improve the charging infrastructure, as the troubles of Ecotality and evGo show. Nissan isn't even having great success getting their own dealers to accept QC stations and to let people use them, let alone keep them available 24x7. There are however many things they could attempt, like increased incentives and requirements for dealers, site agreements with retail chains, site agreements with city governments, equity investment in charging networks like Car Charging Group and EVoasis, gift cards for free charging sessions at various charging networks, etc.
I suspect that the cost of mitigating the effects of battery degradation through infrastructure would be less than the cost of providing new batteries.
If overall QC availability is 50% with 11 stations in the region then probably adding 4-5 more stations would raise availability to at least 75%. If each station costs $50k and there are 2,000 Leafs then the cost per car is $125. Throw in an $8 QC gift card per month for 2 years and you're up to $317 per car, still at least an order of magnitude less than replacing the battery.
Maybe the best way to mitigate the battery degradation would be to replace batteries for a small percentage of cars in the worst shape, and then use those batteries at QC stations to buffer power consumption and reduce utility demand charges which could greatly lower charging fees while increasing charging station profit. Which would lead to higher usage and more profit, which would lead to more stations, which would lead to higher availability, etc. Of course the technical and business obstacles to doing that would be formidable, perhaps insurmountable.