Filed under: Emerging Technologies, Hybrid, Toyota
Buying Prius replacement batteries just got cheaper

The last announcement we have from Toyota this morning is a price reduction on replacement Prius batteries. Both first-gen and second-gen NiMH packs will now be at least ten percent cheaper to replace than before. The new prices for the packs are $2,299 for the 2000-2003 model years and $2,588 for the 2004-2008 model years. This is down from a previous price of $2,985 for either model. Toyota said that "technology and volume related advancements" were responsible for the price decrease.
While current Prius owners who need a fresh power set should be pleased with this news, a more important tidbit for everyone is the news that Toyota is considering - "studying the business case for," as the release puts it - remanufacturing Prius batteries right here in North America as as way to make them even cheaper in the future. If Toyota does want to build and sell those million hybrids a year, having more ways to make batteries is a good thing.
[Source: Toyota]
PRESS RELEASE:
TOYOTA ANNOUNCES PRICE REDUCTION ON PRIUS HYBRID BATTERIES
With More Than 600,000 Vehicles on the Road, Toyota Also Looking at HV Battery Remanufacturing
PORTLAND, Ore., Sept. 24, 2008 -- Toyota Motor Sales (TMS), U.S.A., Inc., announced here today at its Sustainable Mobility Seminar that pricing for first- and second-generation NiMH Prius hybrid vehicle (HV) replacement batteries have been reduced by more than 10 percent. The price of the 2000-2003 first-generation Prius battery has been reduced to $2,299, while the 2004-2008 second-generation Prius battery is reduced to $2,588. Prior to this most recent price reduction, both batteries were priced at $2985.
"We are very pleased with the performance durability of the NiMh battery powering the Prius," said Gary Smith, TMS corporate manager for Product Quality and Service Support. "However, there will be rare cases where owners will require a hybrid battery replacement beyond the mileage limits of the 10-year 150,000-mile warranty or 8-year/100,000-mile warranty in non-California compliant states. For the most part, these high-mileage customers have a positive ownership experience and want to keep their vehicle. We've stated from the beginning that battery replacement costs would continue to decline due to technology and volume related advancements, and we believe this will continue."
Toyota also is studying the business case for remanufacturing Prius HV batteries in North America to further lower replacement costs. As the popularity of the Prius – and units-in-operation – continues to grow, this venture is seen as a positive step in customer satisfaction with high-mileage owners who tend to keep their vehicles for an extended period of time.
Unique to the industry, Toyota is the only automaker to design, develop and manufacture its own hybrid batteries. Its Panasonic EV Energy (PEVE) Co., Ltd. (60 percent share) joint venture with Matsushita Electric produces all NiMH batteries for all Toyota and Lexus hybrids, as well as batteries for competitive hybrid models.
Last May, PEVE announced plans to establish a second battery production plant in Japan, to meet the growing global demand for HV batteries. Last month, Toyota announced that it would have a total production capacity of one million NiMH hybrid batteries per year by 2010.
Additionally, later this year, PEVE will be the first manufacturer to begin assembly-line production of lithium-ion batteries for automotive applications. These first-generation batteries will be used in a limited-volume placement program for a new lithium-battery powered PHV that will be leased beginning in late 2009 to fleet customers in Japan, Europe and North America.

Reader Comments (Page 1 of 1)
why not the LS2LS7? 6:47AM (9/24/2008)
Toyota has previously said that cars are doing great on their original batteries, even the oldest ones, that the reason for replacements was in case the original batteries got damaged in collisions.
But honestly, this article seems to imply a level of replacements that wouldn't just be explained by that.
So what's up Toyota?
Not that $2600 is completely out of the question for a car that's 10 years old, but if it's a certainty as opposed to a rarity, it has to be accounted for in running costs and resale value. I mean if this is a 100% likelihood after 100,000 miles, that would add 2.6¢ a mile to running costs, which would wipe out a lot of gas savings.
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Snowdog 8:14AM (9/24/2008)
Where do you get any implication of a high failure rate or any failure rate at all? There will soon be a Million Prius running the roads and while toyotas system is robust, eventually the batteries will die, and some of those will die before the car is considered junk, they just look to be prudent here.
They test ran a Prius taxi 240 000 miles and the battery was still running fine.
$2000 - $2500 may be a somewhat hefty service bill, but that has nothing on the Volts 10 times larger and 10 times more expensive pack.
tankd0g 10:35PM (9/24/2008)
I took this article to mean they are going to be able to build the next Prius even cheaper since it will probably use the same prismatic form factor as the previous two generations. I doubt they sell too many of these batteries at the retail level.
Jon C 4:57PM (5/25/2009)
I have a 2001 Prius that I really loved, while the battery worked. It has 130,000 miles on it now and the dealer said it will cost me about $4500 to get a new battery, electronic mod, cables, and shop time to replace it.
I'll never buy another Prius.
Jon C
Chris M 7:47PM (5/25/2009)
Jon C, you definitely need to get another dealer, that one is ripping you off big time. As the article noted, the replacement cost for the NiMH battery should be a lot less than that.
If the replacement needed was the 12 volt lead acid battery that powers accessories, then you're being wildly overcharged, replacing that shouldn't cost more than $150. I replaced the 12 volt battery in my Prius myself. With an upgraded larger battery, it only cost $110 for battery and parts.
ryan 8:28AM (9/24/2008)
Considering you can get a $10k mod that turns your Prius into a PHEV, I would say that the quoted $2500 is quite a chunk of change, all things considered. Still, it isn't bad enough that it would deter me from getting a Prius. Wait a second, I OWN a Prius..!
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state 8:46AM (9/24/2008)
Does this include the cost to install?
This "cost" would stop most if not all owners of 10 year old hybrids from doing the work.
And if it was just the batteries that needed work. What about failed computers, electric motors, LCD displays, wiring, etc. The long term costs are horrific.
I predict in 10 years that many will just run these cars on the ICE and forget the cost of keeping the hybrid system running correctly.
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GoodCheer 9:37AM (9/24/2008)
By "in ten years" I take it you mean when the cars are 15-20 years old. I would guess that most people using 15-20 year old vehicles on a regular basis factor historical value or some kind of retro cachet into their vehicle decisions (or are poor college kids.. but they probably won't be driving Prius).
I predict that in ten years the price of replacement batteries will have dropped again, while the price of gas will have risen substantially, so replacing the batteries to improve mileage will be a no-brainer.
giyad 12:18PM (9/24/2008)
@GoodCheer
whatever you say Nostradamus ;-)
Bob Edwards 1:24PM (1/03/2009)
You can't run a Prius on just the ICE if the main battery is failing. The computer and other electronics won't allow it. There is another problem that I haven't heard discussed. The cable connectors to the main battery can corrode and make the computer think that the battery is failing. A few years ago there was a Prius recall to modify the connectors to overcome a corrosion problem. My 2001 Prius is at 190,000+ miles and I am waiting for diagnosis to tell me if it has a corrosion problem or truly a battery problem.
Bob Edwards 6:34PM (1/02/2009)
You can't run a Prius on just the ICE if the main battery is failing. The computer and other electronics won't allow it. There is another problem that I haven't heard discussed. The cable connectors to the main battery can corrode and make the computer think that the battery is failing. A few years ago there was a Prius recall to modify the connectors to overcome a corrosion problem. My 2001 Prius is at 190,000+ miles and I am waiting for diagnosis to tell me if it has a corrosion problem or truly a battery problem.
Madmax 10:20AM (9/24/2008)
"replacing the batteries to improve mileage will be a no-brainer."
Americans are into no-brainers... 6000 pound SUV's with 400 BHp engines delivering a whopping 12 MPG for commuter cars! Combine that with our live in the countryside gated community livestyle. It makes me very upset to see the local news crews interviewing people in large SUV's every time the price jumps 10c/gallon. These people complain about the price of oil and the profits of corporate America, blaming everyone except themselves for the amount of money they just spent on gasoline.
I am a US Military veteran that chooses to drive a paid off 12 year old Saturn with an earth shattering 85 BHp and get 32 MPG.
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philmcneal 12:56AM (9/25/2008)
battery is 2 hours labor, but i believe it pays for 3, believe me the cost of the part is almost 15-20 times greater than the labor cost. Labor cost is the least of your worries.
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Dave 4:09AM (9/25/2008)
I'm surprised the Gen1 Prius battery is cheaper than the Gen2 Prius battery, given that the Gen2 battery is a lot smaller than the Gen1.
They must be selling a lot more of them due to their old age, with the oldest approaching 8 years of age.
I'm also surprised that the price of the packs have dropped when Toyota claims that a battery shortage is keeping them from producing more Priuses.
Oh well. I still have another 9 years and 135,000 miles before I have to worry about the replacement cost of the battery pack in my Prius. Hopefully by then, PHEV kits are a lot cheaper than the $10k A123/Hymotion is charging.
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GB 11:00PM (5/24/2009)
I have 2001 Prius and I have just changed the battery recently after it reached 100,000 miles. Certainly like many Prius owners for this models, I had a few problems with the battery and Toyota recalled it and had it fixed free of charged. I purcharged the new battery on line and it costed me $138.00. The package came with all the instructions so I can self-replace the battery. I am not a mechanic and my skill level for working with car is nowhere up to par (:(:. Anyway. I was able to repalce the battery and the car is running very well right now. It even restores my original gallon per mileage.The new battery is American -made one invented by an very inspirational group of people because they think the price for the new Prius battery is nonsense. They just find out the similarity btw the Prius and Mazda Miata battery and change a few thinngs in the Miata and make it work for the Prius. And so far I love my new battery. So any of you want to learn more about this battery log on to www.elearnaid.com or you can google it
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Chris M 7:59PM (5/25/2009)
What you are talking about is the 12 volt lead acid battery that runs the accessories and the computer. The computer can't start the car if the 12 volt battery is dead, but you can "jump start" it easily. That battery is similar to the starter batteries in other cars, but it is smaller as it doesn't have to start the engine. The cost of replacing that batteries isn't all that great, and, as you've noted, there are alternatives available.
The battery the article is talking about is the 100 pound NiMH battery that starts the engine and powers the hybrid system. That is a much larger battery and costs quite a bit more than the dinky little 12 volt battery, but fortunately it is a lot more reliable. Many have gone over 10 years or 200,000 miles without problems. Replacments are very rare.
GB 8:33PM (5/25/2009)
Thanks for the info. I got it now. I hope with that 12 v battery I have now it would help me to drive a couple more years before I start to think about buying another one. And you're defintely correct about this battery in term of its function (not used to start the engine). Still the cost of this battery is much less than NiMH battery which so far is not quite perfect yet.
Raman 2:01PM (6/25/2009)
How/where can you buy the replacement batteries
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