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Thatcham Research secures funding to identify EV repair and insurance pain points

Risk intelligence specialist Thatcham Research is today announcing that it will lead a funded project focused on Electric Vehicle (EV) collision repair and salvage processes and their impact on insurance claims and their associated costs.


Thatcham Research secures funding to identify EV repair and insurance pain points p

EVs are set to play a central role in achieving the Government’s 2050 net zero target. However, with the repair and insurance process for an Internal Combustion Engine (ICE) vehicle differing greatly from an EV, very little is known about the risks presented by EVs to that process and in turn wider EV adoption.

Adrian Watson, head of engineering, Thatcham Research, said:

“The automotive industry, and OEMs specifically, have been extremely agile in adapting their businesses to meet the net zero challenge laid down by Government. This has seen drivers plugging into EVs in ever increasing number, making now a critical moment for those throughout the value chain to put everything in place to support this rapid transition.

In many circumstances, EV accident repair is no different from ICE vehicles. But under the hood lie everyday essentials, such as safe, cost-effective, timely post-accident repair, and the surrounding claims process so critical to putting any new vehicle on the road. And nowhere is the difference between EV and ICE more clearly underlined than in the insurance claim chain.”

One of the most significant potential blockers to wholesale EV adoption is the battery. Conscious that batteries are expensive, vulnerable items, OEMs rigorously protect them within crash structures, and batteries will rarely be affected by low-speed impacts. However, challenges arise when the battery is involved, either directly or indirectly as a result of a collision, or indirectly when the High Voltage system becomes associated with the repair.

Watson continues:

“It’s vital that the industry comes together to ensure customer expectations of owning, insuring, and repairing an EV can be met—and that the experience can be better than they’re used to with an ICE.”

The best way to repair EVs and their batteries

Thatcham Research will be working in close partnership with LV= General Insurance, one of the largest insurers of electric cars in the UK, and part of the Allianz Group. With its recently launched ElectriX one-stop shop for leasing, charging and insuring EVs, LV= aims to support drivers looking to switch to electric.

The research will draw upon real-world claims data to inform project modelling.

Chris Payne, head of networks and engineering at LV=, said:

“As a motor insurer, we’re focusing on two trends at the moment: developing green methods of repair and supporting the wider adoption of electric cars. That’s why this project is so exciting and crucial. It is about finding together as an industry what is the best way to repair EVs and their batteries, rather than writing them off. This will not only have a positive impact on claims costs, but will also feed a healthy second-hand EV market”

Vehicle salvage, dismantling and recycling specialist SYNETIQ, will also play a key role in the project. As a business focused on recycling and re-using as much of a crash-damaged vehicle as is possible, it will bring essential insight into the readiness of the market for financially and environmentally sustainable EVs post-accident, with a particular focus on their batteries.

Tom Rumboll, UK Managing Director for IAA and CEO of SYNETIQ said:

“We’re delighted to be part of this project and thrilled to work in collaboration with Thatcham Research and LV= to explore the challenges that come with the recycling of EV batteries.

The purpose of our business is to maximise the financial and environmental return on vehicles, and we look forward to seeing how we can achieve this with EV batteries. We’re excited for this opportunity to lead and develop a way forward and we look forward to sharing the results with the rest of the industry.”

In the first phase of what is likely to be a significant cross-industry effort, the project will focus on identifying where the claims workflow is different for EVs, revealing potential pain points. Thatcham Research will also quantify the resulting challenges by projecting how the uptake of EVs will affect the transition to a fully electric car parc, to inform where more detailed work may be required in the future.



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Adam Hewitt

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Owain Griffiths

Owain Griffiths

Head of Circular Economy at Volvo Cars

Owain joined Volvo Cars in June 2021 to lead Circular Economy in the Global Sustainability Team. The company has committed to being a circular business by 2040 and has financial, recycled content and CO2 based targets for 2025, all of which Owain is working across the company to make happen. Owain previously worked for circular economy consultancy Oakdene Hollins where he advised businesses on evidence led circular economy implementation. 

Turning into a circular business and the importance of vehicle reuse and recycling.

The presentation will cover the work Volvo Cars is doing to achieve 2025 but mainly focus on the transformational work towards 2040 and the business and value chain changes being considered. Attention will be paid to the way vehicles are being dealt with at the end of life and the complexities of closing material and component loops. Opportunities and challenges which Volvo Cars is facing will be presented including engagement with 3rd parties and increasing pressure from stakeholders.

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e2e Total Loss Vehicle Management [e2e] is the UK’s only salvage and automotive recycling network with nationwide, environmentally compliant sites delivering performance resilience and service reliability to the insurance and fleet markets.  The network’s online salvage auction drives strong salvage resale values and faster sales.  e2e’s salvage clients have access to the network’s stocks of over 5 million quality graded, warranty assured reclaimed parts. 

The power of the network model means e2e has the ability to influence industry standards and is committed to continually raising the bar whilst redefining the role and perceived value of the salvage operator.  Network members adhere to robust service level agreements, against which they are audited, in order to ensure performance consistency and a market leading customer experience.  

The salvage and recycling operating environment is evolving rapidly, and e2e is anticipating, listening and responding to changing market needs.  Regulatory compliance, ESG, reclaimed parts, customer experience, EVs, new vehicle technologies, data and reputation risk are just some of many considerations linked to the procurement of salvage services.  e2e will drive further added value to clients and members through the adoption and application of emerging technologies, continuing to differentiate its proposition and position salvage services as a professional partnership. 

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