It's often claimed that battery replacement is the hidden cost of owning a hybrid like the Toyota Prius, and that it could well offset the savings incurred by lower gas mileage. If you're looking into a Prius, this is certainly a wise thing to research. Look into the extent of the warranty coverage, the design aspects that give batteries longevity and the inevitably of future cost reductions.
Warranty
First things first: if your Prius is under eight years old and has fewer than 100,000 miles, your battery is covered. The warranty that came with your Toyota Prius ensures that if your battery wears out before you reach either of those markers, replacement will cost you exactly nothing. This means your Pruis will operate a long time without costing you any money for battery replacements.
Engineered to Last
The Prius is engineered to get the most out of its battery. To begin, the on-board computer tries to keep the battery at optimal levels to last: never completely empty and never completely full. This goes a long way to extend battery life. Independent tests show the battery could last 180,000 miles without any significant deterioration. Toyota claims they've never replaced a Prius battery because of wear and tear---a significant claim for a car that's been on the market since 2001.
First-generation Replacement
The cost of replacing a first-generation battery---that is, a battery for a Prius purchased before 2002---is $2,588, as of October 2008. Replacement is offered at all Toyota dealers, but is fairly rare according to Consumer Reports.
Second-generation Replacement
The cost of replacing a second-generation battery---that is, a battery for a Pruis purchased between 2002 and 2009---is $2,299. While this isn't exactly chump change, Consumer Report points out the cost is comparable to the cost of a new transmission.
Future Costs
Toyota expects costs to decrease in the future for a variety of reasons. First, as more Priuses are purchased, the economy of scale kicks in, increasing production of the batteries and decreasing costs as a consequence. Futhermore, research into the production of such batteries continues to yeld results, inevitably driving down prices. Finally, upcoming battery technologies---particularly lithium-ion batteries---could lead to stronger batteries that are cheaper than the nickel-metal hydride batteries in today's Priuses.
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