Cox Automotive has entered the electric vehicle battery lifecycle market.
The company announced Wednesday that it had acquired Oklahoma City-based Spiers New Technologies, (SNT) which provides repair, remanufacturing and refurbishing of EV battery packs.
The terms of the deal were not disclosed by the two companies. Cox stated that the acquisition will allow it to establish its battery servicing offerings, especially as EVs become more prominent. The battery pack can make up as much as 40% of a vehicle's cost. This makes EV battery support even more important.
Public skepticism persists despite increased federal investment in electric cars and automakers announcing billions of dollars to expand their EV businesses. According to Cox research, eight out of ten people who are not interested in purchasing an EV remain skeptical about its value and useful life.
Cox isn't the only company that has ventured into EV battery management. The company also makes a battery diagnostic tool with SNT, which uses Spiers software platform Alfred. Cox stated that it will use the diagnostic tool in order to increase confidence in electric cars, similar to how Kelley Blue Book provides greater transparency on ICE vehicle condition to consumers.
Cox will also be able to own a share of the battery repurposing company through the acquisition. Spiers is one company that specialises in giving EV batteries a second chance after they have been removed from a vehicle. According to TechCrunch, around 80% to 90% of batteries SNT receives come from OEMs and the rest are obtained from auto dismantlers. This business segment is expected to grow with more EVs on the road. Therefore, the transaction will likely give Cox a stake for end-of-life purposes.
