Second-life EV Batteries Market

The Second-Life EV Batteries Market is valued at USD 6.3 Bn in 2026 and is projected to reach USD 47.4 Bn,  growing at a CAGR of 33% by 2033

Market Analysis in Brief

Even when second-hand batteries have outlived their usefulness, they can still be employed in stationary energy systems that use wind and solar power. Lithium-ion batteries used in EVs still contain more than two-thirds of their useable energy storage after six to eight years. Depending on their condition, old electric car batteries can last for an additional five to eight years in different applications. For EV batteries to have a second life, effective recycling of EV batteries, or recovery of essential components from discharged batteries is necessary. For those living in urban and rural regions, second-life battery storage can be a dependable and economical power source. Moreover, it is anticipated that the demand for second-hand EV batteries will be fuelled by the implementation of testing requirements for recycling and reusing batteries, in addition to an increase in the adoption of the blockchain traceability management platform.

Key Report Findings

• The market for second-life electric vehicle batteries will demonstrate a significant expansion in terms of value between 2023 and 2030.
• The industry is primarily driven by installing smart grids and the growing use of electric vehicles.
• By battery type, the demand for lithium-ion remains higher in the second-life electric vehicle batteries market.
• In terms of application, the EV charging category held the largest market revenue share in 2022.
• By the type of vehicle, the commercial vehicles segment held the major chunk of second-life electric vehicle batteries market revenue share in 2022.
• The
• Asia Pacific will continue to lead, whereas the North American second-life electric vehicle batteries market will experience the strongest growth until 2030.

Growth Drivers

Swelling EV Market

Over the past decade, the electric car industry has seen significant changes. Electric car sales have significantly increased and are anticipated to continue during the projection period. This is projected to increase the use of EV batteries. However, disposing of these batteries presents several environmental difficulties. As a result, batteries are now being recycled and reused after competition of their life cycle. The global market for second-life EV batteries is thus anticipated to grow throughout due to the increasing demand for electric vehicles during the forecast.

Recycled EV batteries from major EV manufacturers are used in various energy storage systems across industries, from modest residential buildings to massive commercial ones. For instance, in 2020, waste management business Société Nouvelle d'Affinage des Métaux (SNAM), and Honda Europe partnered strategically, wherein SNAM was to evaluate the usability of Honda EV battery packs in a second life. The development of second-life applications for high-voltage batteries has also been committed to by well-known automakers as part of the effort to establish a closed-loop system that guarantees all the components of cars are recycled.

More Emphasis on Using Green Energy

Batteries that have a second life can cut down on waste while also slowing the ongoing depletion of cobalt, lithium, and nickel minerals. Lithium extraction is an environmentally harmful procedure since it uses a lot of water. Without resorting to the unsustainable over-mining of battery materials, it is possible to employ more used batteries to satisfy the expanding need for energy storage. The best scenario for reusing EV batteries is when they are when their usage is terminated, and they still hold 70% to 80% of their capacity.

Applications that do not demand more usage, such as stationary storage, can use the remaining capacity. Reusing EV batteries for secondary uses could help to reduce CO₂ emissions by 56% compared to natural gas, particularly during peak demand. Because of growing concerns about the state of the ozone layer and the depletion of minerals, the usage of batteries from electric cars in storage solutions has expanded.

Growth Challenges

Limited Stationary Applicability

The most common usage for used EV batteries is in stationary applications. This assumption is supported by the fact that mobile apps have extremely high demands for range, energy density, and power capacity during fast charging. During the vehicle's service life, as capacity declines and internal resistance increases, the battery will eventually reach a point where it cannot perform its function in a mobile application. When only considering these factors, stationary applications are determined to be the best uses for used vehicle batteries.

Overview of Key Segments

Lithium-ion Batteries Surge Ahead

The lithium-ion category will dominate the second-life electric vehicle batteries market over the forecast period. A car with a lithium-ion battery has the benefit of having more storage space for a lot of power and is not heavy, making it easier for the car to travel with less energy. Electric car sales have generally surpassed predictions and have steadily increased since 2020.

Europe has also revealed an additional 200 GWh of estimated capacity for electric vehicles and lithium-ion batteries for 2020 which was predicted to increase to 600 GWh in 2021. The demand for electric vehicles has increased significantly in recent years. As a result, various EV producers, including Tesla, Volkswagen, GM, SK Innovation, and LG Chem, are now competing with one another.

Commercial Vehicle Segment Accounts for the Maximum Share

Over the forecast period, the commercial vehicle category will dominate the second-life electric vehicle batteries market. The sharp increase in demand for electric vehicles to reduce vehicle emigration, tight government laws and regulations governing vehicle emigration, and rising consumer awareness of the function of electric vehicles in reducing emigration are all major factors in this market's exponential rapid rise.

Reducing the increase in demand for electric vehicles queue emigration by government rules and regulations and growing consumer awareness of the role of electric vehicles in decreasing emigration are all major contributors to the segment's explosive growth. Thus, demand for electric commercial cars will increase because of the favourable government initiatives, falling prices of energy, and growing prices for fossil fuels.

Growth Opportunities Across Regions

Asia Pacific Secures the Top Spot

The market second-life electric vehicle batteries market will continue to demonstrate the most significant performance in Asia Pacific. China remains in the lead with the strongest demand generation for used EV batteries in the Asia Pacific region. Furthermore, the demand for second-life EV batteries is high in Asia Pacific, according to a market research analysis on the subject, primarily because of the region's rapid expansion of the electric vehicle market.

The expansion of the second-life EV battery industry is due to the actions of the fast developing Asian countries like China, and India to achieve the COP26 goals of increasing the usage of renewable energy and reducing carbon emissions. There are currently insufficient regulations regarding management of the end-of-life batteries in several developing countries.

The practicality of utilising the used EV batteries must be subject to the legislation that these countries have designed. The market for second-life EV batteries here may thus witness encouraging initiatives for OEMs, as well as start-ups to investigate and manufacture used EV batteries.

North America Set for Fastest Growth

The market for second-life electric vehicle batteries across North America will display a significant CAGR over the forecast period, due to the increase in environmental protection emphasis in these areas as well as the surge in demand for energy storage systems in various sectors. The United States dominates most of the market in North America, while Canada is predicted to have a moderate rise in demand for used EV batteries during the projection period.

Second-life Electric Vehicle Batteries Market: Competitive Landscape

Some of the leading players at the forefront in the second-life electric vehicle batteries market space include Enel X S.R.L, Nissan Motors Corporation, Fortum, Renault Group, BeePlanet Factory, Mercedes-Benz Group AG, RWE, Mitsubishi Motors Corporation, Hyundai Motor Company, BELECTRIC, BYD Co. Ltd., BMW, Beijing Electric Vehicle, Proterra, Inc., Rivian Automotive, Inc., and Morris Garages (MG).

Recent Notable Developments

In March 2022, Mitsubishi, Bosch, and Blue Park joined forces to employ batteries for electric vehicles. According to the deal, Blue Park will contribute to the battery swap platform, which will be a crucial part of the partnership. Bosch will make its cloud-based battery technology available, and Mitsubishi will help it become a viable business. This step, according to Bosch and Mitsubishi Corporation, will hasten the deployment of batteries and the electrification of commercial vehicles.

In August 2021, the new model Volrguard was introduced by Yadea Group (China). An ATL lithium battery pack (72V27Ah*2), with ultra-high density and increased power output simultaneously, powers the scooter.

In June 2021, Fortum (a company testing battery recycling technologies) extended its operations in Finland by investing 24 million euros into the recycling facility to increase its ability to recycle batteries. The industry is primarily driven by installing smart grids and the growing use of electric vehicles.

In June 2018, the carmaker Hyundai Motor Group, and the Finnish energy solution supplier Wärtsilä signed a contract to establish a business connection for the use of old electric vehicle batteries in storage systems.

Volvo is creating EV batteries with BatteryLoop that can be used again in solar energy storage systems to power charging stations for cars and bicycles. As a result, the market for second-life batteries is predicted to increase in energy storage systems due to the rising popularity over the course of the forecast period.

The Global Second-life Electric Vehicle Batteries Market is Segmented as Below:

By Type

• Lithium-ion
• Lead Acid
• Sodium-ion
• Nickel
• Other

By Application

• Electric Vehicle Charging
• Commercial and Industrial Energy Storage
• Grid Charging
• Residential Energy Storage
• Off-grid
• Other

By Vehicle Type

• Passenger Cars
• Commercial Vehicles

By Battery Capacity

• 100–200 kWh
• 200–300 kWh
• >300 kWh

By Geographic Coverage

• North America 
• U.S. 
• Canada 
• Europe 
• Germany
• U.K.
• France
• Italy
• Turkey
• Russia
• Rest of Europe 
• Asia Pacific 
• China
• Japan
• South Korea
• India
• Southeast Asia
• Rest of Asia Pacific 
• Latin America 
• Brazil 
• Mexico 
• Argentina
• Rest of Latin America 
• Middle East & Africa
• GCC
• South Africa
• Egypt
• Nigeria
• Rest of Middle East & Africa 

Leading Companies

• Enel X S.R.L.
• Fortum
• Nissan Motors Corporation
• Renault Group
• Mercedes-Benz Group AG
• BeePlanet Factory
• RWE
• Hyundai Motor Company
• Mitsubishi Motors Corporation
• BELECTRIC
• BMW
• BYD Co. Ltd.
• Beijing Electric Vehicle
• Rivian Automotive, Inc.
• Proterra, Inc.
• Morris Garages (MG)