Cox Automotive Acquires Spiers: Boosting EV Battery Health

Cox Automotive Expands into EV Battery Lifecycle Management

Cox Automotive has announced its entry into the electric vehicle (EV) battery lifecycle sector.

The company revealed on Wednesday the acquisition of Spiers New Technologies (SNT), a firm located in Oklahoma City. SNT specializes in the repair, remanufacturing, refurbishment, and repurposing of EV battery packs.

Details of the Acquisition

The financial specifics of the transaction were not publicly released by either company. Cox stated that this acquisition is strategically important for developing its battery servicing capabilities, especially as EVs become increasingly prevalent.

A significant difference exists between the maintenance needs of EVs and those of traditional internal combustion engine (ICE) vehicles, largely centered around the battery. Supporting EV batteries is crucial, as the battery pack can represent up to 40% of the vehicle's total cost.

Addressing Consumer Concerns

Despite growing federal investment and automaker commitments to EVs, consumer hesitation persists. Research from Cox Automotive indicates that a substantial majority – eight out of ten potential buyers – express doubts regarding the longevity and overall value of EV batteries.

This acquisition isn't Cox’s first involvement in EV battery management. The company has already collaborated with SNT to develop a battery health diagnostic tool, leveraging SNT’s Alfred software platform.

Diagnostic Tools and Transparency

Cox intends to utilize this diagnostic tool to enhance consumer confidence in EVs. This approach mirrors the role Kelley Blue Book plays in providing transparency regarding the condition of ICE vehicles for prospective buyers.

Battery Repurposing and Second Life

The acquisition also positions Cox within the growing battery repurposing market. Spiers New Technologies is a key player in extending the life of EV batteries after they are no longer suitable for automotive use.

Currently, approximately 80% to 90% of the batteries SNT processes originate from original equipment manufacturers (OEMs), with the remainder sourced from auto dismantlers. As the number of EVs reaching the end of their initial lifespan increases, this segment is expected to expand significantly, securing Cox’s position in end-of-life battery solutions.