Electric vehicle batteries typically serve until they drop to 70% to 80% of their original capacity. At that point, most companies recycle them. However, IDTechEx’s latest report, “Second-life Electric Vehicle Batteries 2025-2035: Markets, Forecasts, Players, and Technologies,” explores how second-life EV batteries can offer new opportunities. These options include repurposing or extending first-life use, helping reduce emissions and improve sustainability.

Applications for Second-Life EV Batteries

When electric vehicle batteries reach the end of their first life, OEMs collect and test them. They then pass qualified units to repurposers. Companies often reclaim lithium, cobalt, and nickel through recycling, but repurposing still offers value.

Repurposed batteries support low-power devices, stationary storage, and electric vehicles needing extended use. In Europe and the U.S., commercial and industrial customers use second-life EV batteries for mobile UPS at festivals, construction sites, and charging stations.

Some recyclers or re-manufacturers disassemble batteries to the module or cell level. OEMs then use the parts to repair existing units or send them to power smaller devices like scooters or rickshaws.

A Growing Global Market

China leads in repurposing efforts. In Europe, 20 companies across Germany, the UK, Belgium, and Switzerland participate, along with five in the U.S. and one in South Africa. China often uses second-life EV batteries for telecom tower backups or large-scale UPS systems.

Regulations still favor recycling. The EU’s 2031 and 2036 goals focus on minimum recycled content, not reuse. As a result, OEMs tend to partner with recyclers instead of repurposers.

Although second-life batteries reduce emissions over their lifetime, most policy discussions do not yet reflect this benefit.

Competing with First-Life Battery Systems

New lithium-ion energy storage systems (BESS) have grown rapidly. Global deployments jumped from 23.1 GWh in 2021 to 92.3 GWh in 2023. Lower prices make them more attractive, which puts pressure on second-life battery adoption.

Second-life EV batteries often cannot match the performance of new units due to degradation. Lowering costs remains essential for repurposers to compete.

Despite these challenges, the market for second-life EV batteries continued to grow in 2023 and 2024. IDTechEx highlights pricing challenges, incentive gaps, and collaboration strategies in its full report. They also cover key funding opportunities and partnerships that could support long-term adoption.