Are there diminishing returns if you are a company working on a million mile battery since virtually no vehicles will make it that far?
I am speaking as someone who has had three cars totaled before 100,000 miles (none of which were my fault!)
The fact it carries over to vehicles is just a bonus.
Besides the salvage value of a battery pack would be huge, so I suspect a battery would be about the last piece of a car to end up on the scrap heap.
Lots of commercial vehicles make it to a million miles. Those are the ones that will want the longest lived batteries.
The market for batteries pulled from wrecks is hot! For my own personal interest I wish it wasn't so I could batteries for cheap.
The main problem is the number of full capacity cycling a battery cell can do can change widely based in how it is used. So it depends on how it is integrated into a car and how the car is being used. A typical Li-Ion cell will last a few hundred cycles if cycled completely at a high rate without proper thermal control. But this number can easily be multiplied by 10 with proper thermal management, not charging it to max voltage and doing shallower cycling. If you want to give a number for a final product, you are bound to make assumptions on how it will be used. And at this point you just have an equivalence between distance driven and cycling count.
Also, age has less impact than cycling count in the context of a properly designed battery pack. The two main factors for battery degradation are time spent at high temperature and high state of charge, and cycling count (with speed and depth being the key elements). EV manufacturers are keeping a buffer for that purpose and their batteries do not spend a lot of time at high state of charge where the chemical degradation is more effective.