Second-life EV battery market worth US$4.2b by 2035, says IDTechEx

The global second-life EV battery market may grow to US$4.2 billion (about NZ$7.2b) in value by 2035, given the increasing availability of retired EV batteries over the coming decade.

So says newly updated IDTechEx market report Second-life Electric Vehicle Batteries 2025-2035: Markets, Forecasts, Players, and Technologies.

Lithium-ion batteries in EVs may be used for six to15 years, depending on the application and their degradation over time, says IDTechEx senior technology analyst Conrad Nichols.

Once these batteries reach a capacity or State-of-Health (SOH) that is too low to facilitate the driving range requirements of the EV, these are retired, he says.

“These batteries could be recycled to reclaim critical and valuable raw materials, which could be reintroduced into new EV battery manufacturing.

“However, these batteries could also be repurposed for second-life applications prior to recycling<’ says Nichols, adding it would maximise their value, extend their lifetime, and contribute to a circular lithium-ion  (li-ion) battery economy.

“Key second-life EV battery applications could include less demanding stationary battery storage or lower-power electromobility applications such as scooters or rickshaws.”

IDTechEx expects that repurposers in China are already scaling their deployments of second-life batteries, primarily for backup power applications, especially for telecom towers, given the growing demand for these technologies.

Outside China, activity from 20 repurposers in Europe dominates the remainder of the global market, giving rise to a steadily growing volume of second-life batteries for commercial and industrial (C&I) applications in the region, says IDTechEx.

 Second-life batteries for these applications could include optimisation of renewable energy self-consumption, peak shaving, and EV charging.

However, key players in the US, including B2U Storage Solutions, Smartville, Higher Wire, and BBB Industries/TERREPOWER, have also continued to develop second-life battery technologies, says IDTechEx.

It says the future of the second-life EV battery market will depend on numerous factors, related to policies and regulations, EV battery design and technology trends, advanced battery testing technologies, and collaboration between automotive OEMs and repurposers.

Nichols presents a free-to-attend webinar on the topic Navigating Emerging Trends for the Economic Development of Second-Life EV Batteries on Thursday January 9, 2025, three times in one day.

Click here to register.