Global Second-life EV Batteries Market 2025–2034

Reports Description

The surging adoption of EVs is boosting the market’s growth

According to Custom Market Insights (CMI), The Global Second-life EV Batteries Market size was estimated at USD 255 Million in 2021 and is expected to reach USD 1230 million in 2022 and is expected to hit around USD 92000 Million by 2030, poised to grow at a compound annual growth rate (CAGR) of 45.2% from 2022 to 2030. 

The report examines the Second-life EV Batteries market’s drivers and restraints and their impact analysis. Also, the report mentions global opportunities prevailing in the Second-life EV Batteries market.

Second-life EV Batteries Market: Overview

The financial potential for battery reuse, sometimes known as “second life,” contribute to further lowering the initial costs of EV batteries and raising the value of a used EV. Second-hand batteries represent a market for inexpensive storage for utilities and electricity users, given the expanding EV sector. However, the policy will play a significant role in removing obstacles and assuring ethical, egalitarian, and ecological practices to enable the widespread reuse of EV batteries.

Second-life EV Batteries Market: COVID–19 Impact Analysis

The COVID-19 epidemic has had a detrimental effect on the world market for Second-life EV Batteries. The COVID-19 epidemic had an impact on the Second-life EV Batteries market as well as the supply chain for Li-ion batteries. For instance, in Q1 2020, monthly EV sales in China did decrease by 39%. Over the past ten years, lithium-ion battery prices have dropped precipitously; these falling prices, along with the growing uptake of electric cars, are the main drivers of market demand throughout the projection period. On the other hand, market growth is anticipated to be constrained by the imbalance between raw material supply and order during the anticipated period. 

Second-life EV Batteries Market: Growth Drivers

Rising adoption of electric vehicles

Due to the increase in fuel prices worldwide, more individuals are choosing to use electric automobiles (EVs). Thus, it is predicted that EV demand will increase in the following years, which would, in turn, enhance sales of the batteries used in EVs. However, due to the disposal of these batteries, awareness of environmental hazards has grown. As a result, the recycling and reuse of batteries have increased once their lifecycles are complete. This indicates that the increased use of EVs globally is projected to significantly impact the market for used EV batteries during the forecast period.

Installations of smart grids

A smart grid is a circuit system that uses cutting-edge technology to monitor regular operation remotely. Due to the two-way communication capabilities of the intelligent devices, the utility may interact with them and regulate their process to find errors. The critical market actors, service providers, utility providers, and consulting firms have much to gain from the increase in investments in innovative city projects. With the use of technology and the wise use of resources, it is necessary to handle essential services like utility, safety, transportation, and health more effectively and wisely. The ability of intelligent grids to deliver reliable electricity for carrying out functions is essential to the development pace of intelligent cities. APAC is projected to adopt smart city technologies due to its high urbanization rate.

Increased focus on environmental protection and green energy use

Recycled batteries can lessen waste while halting further mineral depletion of cobalt, lithium, and nickel. Because lithium extraction uses a lot of water, it harms the environment. The widespread use of used batteries can help satisfy the rising demand for energy storage without requiring excessive, unsustainable mining of battery materials.

When an EV battery reaches its capacity, it is either discarded, recycled, or reused. Since EV batteries preserve 70% to 80% of their capacity after being retired from EVs, reuse is desirable. The remaining power is appropriate for less demanding uses like stationary storage. Compared to natural gas, recycling EV batteries for secondary uses could result in a 56% reduction in CO2 emissions, especially during periods of high demand.

Using used EV batteries in storage solutions has increased due to growing worries about the ozone layer and the depletion of minerals. For instance, in June 2018, the car manufacturer Hyundai Motor Group and the Finnish energy solution provider Wärtsilä inked a contract to form a business relationship for using used EV batteries in storage systems. 

Second-life EV Batteries Market: Segmentation Analysis

In our research scope, the Second-life EV Batteries market is segmented into type and application. Based on type, the lithium-ion market is anticipated to witness a high CAGR from 2022 to 2030. In 2021, the lithium-ion battery type had the largest market share; by 2030, the segment is anticipated to continue its dominant position. This is mainly because they are available in typical industry sizes, are 50–60% lighter, and have a 25–50% larger capacity. They also feature a low self-discharge rate, enabling them to sustain their charge for extended periods. Additionally, they charge quickly—between one and three hours—and include built-in overcharge protection.

Report Scope

Key Insights: 

• As per the analysis shared by our research analyst, the Second-life EV Batteries market is estimated to grow annually at a CAGR of around 45.2% over the forecast period (2025-2034).
• In terms of revenue, the Second-life EV Batteries market was valued at around USD 255 million in 2021 and is projected to reach USD 92000 Million by 2030. Due to a variety of driving factors, the market is predicted to rise at a significant rate.
• The Second-life EV Batteries market research offers a comprehensive analysis of the present market and projections through 2020–2030 to help find possibilities to profit from the existing market.
• The study includes data on the significant market drivers, challenges, and opportunities and their effects.
• The study elaborates on the SWOT analysis and Porter’s Five Forces model.
• The market study’s value chain analysis gives a comprehensive picture of the stakeholder’s responsibilities.

 Recent Development

• March 2022: Blue Park, Bosch, and Mitsubishi partnered to use electric vehicle batteries. The battery swap platform will be a vital component of the relationship, and Blue Park will contribute to it, per the agreement. Bosch will offer its cloud-based battery technology, and Mitsubishi will support the ability to commercialize it. Bosch and Mitsubishi Corporation anticipate that this action will accelerate the deployment of batteries and the electrification of commercial vehicles.
• August 2021: Hyundai Motor Company and Underwriters Laboratories signed an agreement to secure the deployment and use of second-life battery energy storage systems. UL and Hyundai will work on these projects, including safety testing and assessment, a North American demonstration project, and evaluation process development.

Regional Landscape

The significant growth of the electric vehicle sector in the Asia Pacific region mainly accounts for the strong demand for second-life EV batteries. With over 35% market share, Asia Pacific led the world market for second-hand EV batteries in 2021. During the forecast period, its share is anticipated to increase. The need for second-hand EV batteries in the Asia Pacific is dominated by China.

Competitive Landscape

The second-life EV battery market is consolidated globally, with a few key vendors holding most of the market share. Leading market participants in the second-life EV battery industry are concentrating their investments on the R&D of green products. As a result, key players frequently use acquisitions and product portfolio expansion as primary strategies.

Prominent Players:

• Enel X S.r.l.
• Fortum
• Nissan Motors Corporation
• Renault Group
• Mercedes-Benz Group
• BeePlanet Factory
• RWE
• Hyundai Motor Company
• Mitsubishi Motors Corporation
• BELECTRIC
• BMW
• Daimler AG
• Beijing Electric Vehicle
• Rivian
• Proterra
• Applied Energy
• Morris Garages
• Others

The global Second-life EV Batteries market is segmented as follows:

By Type 

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

By Application 

• EV Charging
• Commercial and Industrial Energy Storage
• Grid Charging
• Residential Energy Storage
• Off-grid

By Vehicle Type 

• Passenger Cars
• Commercial Vehicles

By Battery Capacity 

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

On the basis of Geography

North America

• U.S.
• Canada
• Mexico
• Rest of North America

Europe

• Germany
• France
• U.K.
• Italy
• Spain
• Rest of Europe

Asia Pacific

• China
• Japan
• India
• New Zealand
• Australia
• South Korea
• Rest of Asia Pacific

The Middle East & Africa

• Saudi Arabia
• UAE
• Egypt
• Kuwait
• South Africa
• Rest of the Middle East & Africa

Latin America

• Brazil
• Argentina
• Rest of Latin America