Second-life Electric Vehicle Batteries 2020-2030

The continued growth of electric vehicles has led to a question on its most expensive component: what happens to the battery when it reaches the end-of-life in electric vehicles? After 8 to 10 years of service in electric vehicles, those batteries are normally retired due to faded capacity and power that fail to meet the range requirement of electric vehicles. According to IDTechEx research, by 2030 there will be over 6 million battery packs retiring from electric vehicles per year. Recyling to extract raw materials from the spent batteries seems to be the default option. 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. Major OEMs and energy storage companies have launched various pilot and business initiatives to explore second-life applications for used electric vehicle batteries.

 

Second-life batteries provide huge value opportunities for a range of stakeholders across the automotive and energy storage sectors. However, many technical, economic and regulatory challenges exist that prevents companies to profit from second-life batteries. This report offers an in-depth analysis of key technologies, players, challenges and market opportunities across the second-life battery value chain. Second-life batteries connect the electric vehicle and energy storage value chains. The potential value of second-life batteries is impacted by how the batteries are designed and used in their first life in the electric vehicles, how they are collected and used in second-life applications as well as 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.

 

 

 

The first batch of electric vehicle batteries are reaching their retirement age and the next ten years will see a huge increase in the volume of retired batteries. According to a recently research by IDTechEx's, there will be over 6 million battery packs retiring from electric cars, buses, vans and trucks by 2030.

 

Batteries are the most expensive component of an electric car. At the end of their service life in electric vehicles, the retired batteries could still retain 70-80% of their initial capacity. Recycling is necessary in the end but before that, giving those retired but still capable batteries a 'second-life' in less-demanding applications such as stationary energy storage could bring tremendous value to a wide range of stakeholders across the automotive and energy sectors.

 

By 2030, second-life battery capacity will hit over 275GWh per year which presents huge opportunities for energy storage. However, many technical, economic and regulatory challenges exist that might make it difficult for companies to profit from second-life batteries. IDTechEx's latest report named Second-life Electric Vehicle Batteries 2020-2030 offers an in-depth analysis of key technologies, players, challenges and market opportunities across the second-life battery value chain. Second-life batteries connect the electric vehicle and energy storage value chains. The potential value of second-life batteries is impacted by how the batteries are designed and used in their first life in the electric vehicles, how they are collected and used in second-life applications as well as 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.

 

Based on our conversations with over 20 industrial leaders in the area of second-life batteries and the expertise of IDTechEx's analyst team, this report presents a comprehensive analysis of the second-life battery industry and how it will evolve over the next ten years. The ten-year forecast on the available capacity of second-life batteries from major electric vehicle categories, passenger cars, buses, vans and trucks (pure electric vehicles and plug-in electric vehicles), shows the potential size and constitution of the second-life battery market. By 2030, global second-life electric vehicle capacity is expected to hit over 275GWh per year.

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