EV Battery Reuse Market Size - By Application (Energy Storage, EV Charging, Base Stations, Low Speed Vehicles), By Source (BEV, HEV & PHEV) & Forecast, 2024 - 2032

EV Battery Reuse Market Size

The global EV battery reuse market size was reached USD 393.6 million in 2023 and is expected to grow at a CAGR of 46.6% from 2024 to 2032. This tremendous growth comes from the world’s expansion of EV adoption which leaves behind many used EV batteries for remanufacturing into other usable products such as ESS.
 

The International Energy Administration suggests the use of electric vehicles grew to about 4% of total car sales in 2020 and reached 18% in 2023. National policies and regulations that focus on improving the environment are also enhancing the market by encouraging battery recycling and refurbishment to achieve lower carbon emissions and practice principles of circular economy. At the same time, active innovations in the engineering of battery control systems and energy storage systems continue to increase the efficiency and practicality of EV battery reuse, which has become a big factor in market growth.

EV Battery Reuse Market Trends

As more countries around the world adopt electric vehicles (EVs), the market for EV batteries is expanding. As the market for EVs matures, the need for sustainability and for practices that promote a circular economy increases. As a result, there is a higher emphasis on the reuse of EV batteries. This trend is enabled with the development of the battery technologies and energy storages which allow the modified used batteries to be utilized for the energy storage systems and grid frequency stabilization.
 

The development of the market is also encouraged because more stringent regulation regarding environmental norms which in turn creates pressure for industry players to develop new recycling and refurbishment technologies. Finally, cross-industry collaborations also stimulate ecosystem evolution, enabling more effective battery collection, refurbishment, and deployment.
 

EV Battery Reuse Market Analysis

The EV battery repurposing industry serves a broad variety of applications including low speed vehicles, energy storage and base station as well as EV chargers. The market for EV battery repurposing for energy storage systems is expected to reach more than USD 4.5 billion by 2032. Although drained EV batteries may not be appropriate for cars anymore, they still have a lot of usable potential for stationary power storage. The driven market growth for battery repurposing stems from the changing business models due to the rapid demand for cleaner energy and cheaper power storage solutions. EV battery repurposing helps cut down waste as well as makes renewable energy sources easier and cheaper to use in traditional power grids.
 

The EV battery reuse market from BEV segment is expected to increase at a CAGR of more than 54.5% through 2032. With more countries across the world embracing electric vehicles, EV batteries are expected to have second lives in energy storage systems to aid in renewable power generation, stabilize grids, and serve industrial purposes. This trend is driven by anticipated advancements in battery technologies, sustainability efforts, and growth of regulatory incentives to support circular economy policies. It is predicted that the EV battery reuse will receive powerful growth due to the many opportunities that exist beyond automotive applications.
 

Asia-Pacific EV battery reuse market is projected to surpass USD 7.5 billion by 2032. This is due to the increasing adoption of electric vehicles in the region, the improved battery technology for ‘secondary life’ use, and increased funding for sustainable energy schemes. China was the leading country in EV sales in 2021 with more than 3.3 million vehicles sold, which is three times that of vehicles sold in 2020. There are new policies that encourage circular economy and incentives for reusing EV batteries, which is also helping to grow the market. At the same time, the need for energy storage and solutions for grid stability is driving this market segment in Asia-Pacific.
 

The EV battery reuse market in the US has been growing tremendously in line with increasing adoption of EVs, which has heightened the availability of used batteries for secondary applications. The improvements in batteries and other technologies increases the effectiveness of energy storage and uses in industry. The sustainability policies support investment. Furthermore, there is growth potential in the industry due to increased demand for grid security and renewable sources of energy.
 

EV Battery Reuse Market Share

Using battery technology and other sustainable methods, Tesla manages to dominate the market of EV battery reuse. Given their obsession with the environment, Tesla delves deep into unique methods of enabling second-life applications for their batteries. This approach enhances Tesla's niche revolving around electric vehicles while simultaneously improving the widely established energy storage industry.
 

EV Battery Reuse Market Companies

Some of the key players operating across the EV battery reuse industry are:

• B2U Storage
• BatteryLoop
• Connected Energy Ltd.
• evyon.com.
• Moment Energy
• Nissan Motor Co., Ltd.
• OCTAVE BV
• RePurpose Energy Inc.
• Renault Group
• RWE + Audi (AUDI AG and RWE)
• Second Life EV Batteries Ltd
• Spiers New Technologies Inc.
• Stena Metall
• Tesla
   

EV Battery Reuse Industry News

• Cactos and Smartville, two second life battery energy storage system solutions providers, reported in November 2022 that they have secured investment for their energy storage projects in the U.S and Finland. These new initiatives are going to employ repurposed batteries sourced from Tesla's electric vehicles, available through third-party suppliers. Once these projects are completed, they will allow the proliferation of more second life projects across the world, which in turn will increase the demand for repurposed Tesla EV batteries.
   
• In September 2021, Cox Automotive, the solution provider company within the automotive sphere, announced their plan to acquire Spiers New Technologies Inc. Since completion of the acquisition, Cox Automotive is able to provide advanced end-of-life solutions for EV batteries to EV manufacturers as well as expand the market reach of SNT through Cox Automotive's relationships with automakers.
   

This EV battery reuse market research report includes an in-depth coverage of the industry with estimates & forecast in terms of volume and revenue in MWh & USD Million from 2021 to 2032, for the following segments:

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Market, By Application

• Energy storage
• Ev charging
• Base stations
• Low speed vehicles

Market, By Source

• BEV
• HEV &PHEV

The above information has been provided for the following regions and countries:

• North America
  • U.S.
  • Canada 
• Europe
  • UK
  • Germany
  • Italy
  • Spain
  • Russia
  • France
• Asia Pacific
  • China
  • Japan
  • South Korea
  • India
  • Australia
• Rest of the World