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The battery is probably fine. Kobo readers (I have the Clara HD and the Libra 2, among others) are notorious for underreporting the battery-life remaining for the first few discharge cycles, until the device "learns" the capacity. Just let it ACTUALLY run down once or twice (turn off the go-to-sleep timer and leave the ebook reader on) and then fully recharge it, and the meter should be accurate.
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