As the pre-owned electric vehicle population grows, so too does the importance of measuring EV battery health.

And its potential impact on residual values.

With that in mind, J.D. Power ALG is now factoring in aggregated EV range and battery insights from Recurrent into its EV value forecasts.

J.D. Power ALG has included the Recurrent data in its latest release of the residual value model for EVs, which is called Model 8.0.

Included in that model are insights on range retention and age-related maintenance from Recurrent’s nearly 1 billion miles of real-world observational data, which covers close to 100 EV makes/models.

“Including Recurrent data in J.D. Power ALG’s EV forecasts is an ideal use case that underscores how our range and battery data is increasingly being used as a kind of centralized currency in the used EV market, just like odometer is for used ICE vehicles,” Recurrent CEO Scott Case said in a news release.

Projecting EV residual values has typically been tough, but being able to do so reliably has a plethora of industry and consumer benefits, Recurrent said.

Among the challenges that have historically faced EV residual value forecasts are battery uncertainty (which can cause a “perception of risk” on used EVs) and tech advancements that can leave even recent EVs “obsolete,” Recurrent said. Additionally, with an “unclear secondary market,” resale wasn’t always a sure thing, they added.

But change is afoot.

“As the second-hand market grows in strength and volume, and the industry becomes confident in battery longevity, improved residual value forecasting will bolster the EV sector,” Recurrent said in the release.

“More accurate and EV-specific residual values will lead to better lease terms, more informed trade-in expectations, and stable certified pre-owned (CPO) programs through OEMs.”

Speaking of automakers, J.D. Power ALG will be able to cover all OEMs and EVs in the country, including Tesla and Rivian, thanks to the Recurrent data.

They added that Model 8.0 utilizes the attributes that ocnsumers find most valuable about EVs, thus is “designed with the future in mind to remain accurate even as EV technology continues to evolve,” the company said.