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Hsu鈥檚 initial repair estimate of around $30,000 quickly mushroomed to聽$60,000 once he involved his insurer, B.C.鈥檚 provincial insurance corporation, ICBC, which based its cost determinations on a second Hyundai dealer鈥檚 repair quote.

The quoted cost of the new battery 鈥� it was more than $56,000 for the pack alone 鈥� meant that, even before factoring in the labour to change it, the cost exceeded the value of the car.

It’s a bizarre set of circumstances that made sending an otherwise intact, low-mileage vehicle to a salvage auction a less costly alternative to repairing it.

The idea that a single component 鈥� in this case, it was an assembly, consisting of聽many parts, but sold as one piece 鈥� could be valued at close to ninety-eight per cent of a 2024 model鈥檚 $57,677-pricetag is ludicrous. Could you buy the remaining parts of an Ioniq 5 from the dealer for $1,027?

Hyundai says it has fixed what it describes as a flawed pricing system that incorrectly inflated the cost of Hsu鈥檚 replacement battery. But online pricing for one of the several possible batteries used in a 2023 Hyundai Ioniq 5 is still an eye-watering $43,530.90.

Why are nearly-new vehicles, such as Hsu鈥檚, being written off when the damage is minor enough that the vehicle was still operable? Why not repair it?

Three major factors would appear to play a role: fears of liability among repair shops, insurers and automakers; unfamiliarity with EVs among these and car-owners, too; and, in many cases, designs and construction of batteries that deter, or outright prevent, repairs.

High voltage batteries have been part of the automotive landscape for more than 20 years, courtesy of hybrids, such as the Prius, and subsequent EVs, such as Tesla鈥檚 Model S and others. But the numbers were small enough until recently that most auto service folks have had little to no experience in dealing with them.

Erring on the side of caution is natural.

Unlike a fuel tank, a battery pack suffering an impact can have damage that can鈥檛 be seen.

The most obvious risk is, of course, electric shock 鈥� not readily visible or detected without equipment 鈥� particularly if the structure of the pack has been compromised by collision damage. The lithium-ion batteries used in EVs also pose a significant fire risk of igniting due to short circuits caused by collision damage or from overheating, and individual cells can short out internally from the degradation of their materials.

In a litigious world, few want to be liable for giving the all clear to a battery pack that could have been compromised in any way, lest it come back to haunt them. A new pack or vehicle replacement eliminates the chance of culpability for auto shops and insurers.

The 鈥渢raction鈥� or high-voltage batteries used in hybrids and EVs consists of hundreds or thousands of cells. Cells are clustered in larger modules.聽These are grouped together to achieve the desired total voltage output and storage capacity, then, usually, enclosed in a tub or housing. Due to their considerable size and mass, the battery packs are often located beneath the floor of the vehicle.

What can be done to prevent unnecessary replacements of these EV batteries?

Representatives from Ford, Hyundai, Kia, Nissan and Volkswagen (General Motors did not reply by time of filing), confirmed to Wheels that guidelines and/or policies do exist to aid technicians in determining if a damaged or faulty pack needs replacing.

Kia noted that its policy was for dealers to report EV battery-related issues to its central Canadian Technical Assistance Centre so they can work together to assess the correct course of action, while Hyundai stated that it is rolling out a similar program for repairs beyond the scale of smaller problems techs are trained for. Nissan and VW specified that the replacement of individual modules is possible.

As to why Kyle Hsu鈥檚 entire pack required replacement, a little more technical knowledge is required. As you can imagine, just as your phone or laptop gets hot while charging, EV batteries need a cooling system to protect them from excessive heat. EV batteries are generally cooled by contact with tubes or 鈥渃old plates鈥� filled with coolant. In most designs, these coolers are internal to the housing. In Hyundai/Kia/Genesis鈥� shared 鈥淓-GMP鈥� platform models (Kia EV6, Hyundai Ioniq 5/6, Genesis GV60), the cooling passages are on the underside of the pack鈥檚 floor, protected by a thick plastic panel and an air gap. It鈥檚 a clever way to simplify the design, but it does create a unique vulnerability.

Hyundai鈥檚 official policy is, 鈥渋f the battery has sustained enough damage to rupture the internal cooling system, we would consider this a nonrepairable condition and would recommend replacement.鈥�

In the end, it’s vital to be aware that EVs do have a single component, the replacement value of which may approach or exceed that of the vehicle, itself. Electric vehicle owners should consider adding “gap” insurance to their policy to cover the difference between the vehicle鈥檚 new and depreciated value, in the unlikely event that the cost of replacing a battery exceeds the value of the vehicle. Kyle Hsu’s story is unusual, but EV buyers need to understand it.

Ask a Mechanic is written by Brian Early, a Red Seal-certified Automotive Service Technician. You can send questions to wheels@thestar.ca