Second-life EV Batteries: Pioneering Sustainability & Growth

The second-life EV batteries market is projected to reach US$28.17bn by 2031, growing at a remarkable CAGR of 43.9% from 2024.

A surge in EV adoption, increased reliance on renewable energy and initiatives to mitigate environmental impacts from battery disposal are fuelling this immense growth.

Now, a new report from Meticulous Research has shed light on the opportunities and key trends in this rapidly-expanding sector.

Addressing environmental concerns

Battery disposal has long been a critical environmental challenge, as chemicals and metals in batteries can seep into the soil and water, causing harm.

To combat this, governments and businesses are developing robust recycling frameworks and promoting battery refurbishing to extend battery life.

Governments worldwide are implementing regulations to foster sustainability in battery ecosystems.

For instance, India’s Battery Waste Management Rules, introduced in 2022, enforce extended producer responsibility (EPR), requiring battery manufacturers to recycle or refurbish waste batteries responsibly.

The power backup segment aims to dominate in 2024, capturing 55.1% of the market. Meanwhile, the EV charging segment is expected to grow at a record CAGR of 48.5% by 2031, reflecting the growing EV market.

Demand for second-life batteries is projected to account for the largest share (51.1%) in the commercial sector in 2024. However, residential applications will experience the highest growth rate as homeowners adopt sustainable energy solutions.

Geographical trends: Asia-Pacific leads the charge

Asia-Pacific is dominating the second-life EV batteries market in 2024, with an impressive 68.7% share.

The region’s efforts to integrate green energy into power systems drive this growth. For instance, India plans to reach a renewable energy capacity of 500 GW by 2030, while Singapore aims for net-zero emissions by 2050.

Companies in the region are spearheading initiatives to repurpose EV batteries. In 2020, Tokyo Electric Power Co. Holdings (TEPCO) launched a project in Japan using second-life EV batteries to create energy storage systems for renewable plants. Similarly, in 2023, MG Motor India partnered with LOHUM to develop battery energy storage systems, advancing the circular economy.

Europe: A fast-growing market

The European Union (EU) is committed to a circular economy for EV batteries, aiming to recycle and reuse all battery resources. Automakers are actively exploring second-life applications for batteries that retain 70-80% capacity after automotive use.

Recent initiatives include:

• Kia Europe’s collaboration with Deutsche Bahn’s startup encore to repurpose EV batteries into energy storage systems
• Audi AG and RWE’s energy storage project in Germany utilises batteries from electric cars.

Key players and competitive strategies

Major industry players are driving innovation and expanding their global footprint.

Companies like B2U Storage Solutions, RePurpose Energy and Connected Energy are developing cutting-edge storage technologies and forming strategic partnerships to capitalise on the market’s potential.

Notable developments include: 

• Smartville’s Smartville 360 BESS: An energy storage solution integrating repurposed EV batteries.
• B2U Storage Solutions’ technology can transform used EV batteries into large-scale arrays storing renewable energy.
• LOHUM and Vecmocon’s collaboration: Focused on lifecycle management of EV batteries to power over 100,000 EVs.

The future of second-life EV batteries

With growing investment, technological innovation and government backing, the second-life EV batteries market is poised for exponential growth.

By addressing environmental challenges and promoting sustainable practices, these batteries are reshaping the energy landscape while contributing to a greener, more sustainable future.

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