When a lab is demolished, the Lab Equipment that went into the build is refunded (in full or partial, depending on difficulty). So, I would expect to get a refund (or discount) also on the Lab Equipment when upgrading Labs.
However, when lab is upgraded, Lab Equipment is not refunded (and there is no discount on the new Lab Equipment). It's actually more beneficial from a materials perspective to demolish and then rebuild new labs, which doesn't feel right.



