Retired EV batteries have long second life

What happens to the batteries after eight to 10 years of service when they retire from EVs due to capacity fade?

More than six million battery packs annually will be retiring from EVs by 2030, according to IDTechEx’s latest report on Second-life Electric Vehicles 2020-2030.

Recycling to extract raw materials from the spent batteries seems to be the default option, report author Dr Na Jiao says.

However, those used batteries could still retain up to 70-80% of the original capacity that can be further utilised in less-demanding applications such as stationary energy storage, before being recycled.

Volkswagen announced an ambitious target to build a million EVs by 2025 and has already got a plan for its used EV batteries.

Earlier this year, Volkswagen unveiled its “power bank for the e-car”, a mobile rapid charger comprising up to 360kWh second-life EV batteries that can charge a maximum four vehicles simultaneously.

The second-life battery powered mobile charging stations provide a flexible and cost-efficient approach to the rapid expansion of the charging infrastructure, according to Volkswagen.

Major OEMs and energy storage companies have launched various pilot and business initiatives to explore second-life applications for used EV batteries.

By 2030, second-life battery capacity will hit over 275gWh per year which presents huge opportunities for energy storage, according to the IDTechEx report.

However, many technical, economic and regulatory challenges exist that might make it difficult for companies to profit from second-life batteries.

The report offers an in-depth analysis of key technologies, players, challenges and market opportunities across the second-life battery value chain.

Based on conversations with global leading players in the second-life battery area, this report predicts the market size and analyses the major market trends of second-life batteries over the next decade.

The potential value of second-life batteries is impacted by how the batteries are designed and used in their first life in the EVs, how they are collected and used in second-life applications, and the value of recycling.

The value chain analysis in this report takes the lifecycle perspective to help stakeholders identify potential value opportunities. Key technical challenges are identified and companies that are developing technologies to improve second-life battery value are analysed.

This report also presents a cost analysis and the potential pricing mechanisms for second-life batteries.

Existing business models of battery second use are analysed, and how service-based business models could facilitate battery second use is discussed in the report.

Dr Jiao will be at the IDTechEx Show, November 20-21, at the Santa Clara Convention Center, California.