Second-life Electric Vehicle Batteries 2019-2029

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 not only improves material efficiency, but also has the potential to bring tremendous value to a wide range of stakeholders across the automotive and energy sectors, as well as to the society and environment.

 

The first batch of batteries of electric vehicles is reaching their retirement age and the next ten years will see a huge increase in the volume of retired batteries: by 2029, there will be around 3 million used battery packs coming out of electric vehicles per year which represents around 108GWh available storage capacity. Major automotive companies have announced various projects and business initiatives for second-life batteries.

 

However, many technical, economic and regulatory challenges exist for battery second use and how to better extract value from second-life batteries still remains unknown.

 

Based on our conversations with 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 different electric vehicle categories, passenger cars and electric buses (pure electric vehicles and plug-in electric vehicles), shows the potential size and constitution of the second-life battery market.

 

Second-life electric vehicle battery annual available capacity

 

/Source: IDTechEx/

Second-life batteries are just like new batteries but with degraded capacity to different degrees. Therefore, the key is to match the 'right' batteries with the 'right' applications. This report analyses the potential markets for second-life batteries in both stationary and mobile energy storage applications. We present a timeline as well as a comprehensive analysis of announced battery second use projects and businesses in the industry and provide insights into the key technologies, applications and business models.

 

/Source: IDTechEx/

 

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. This report presents a value chain analysis from 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.

 

Currently the second-life battery sector is still at its nascent stage and regulations could play a key role in the feasibility and value of battery second use. China has recently announced several measures and plans to regulate the recycling and second use of retired electric vehicle batteries. From August 2018, all electric vehicle batteries produced in China will be given a unique ID to help track the batteries from production throughout to sales, usage, collection, second use and recycling. This report presents the regulatory landscape which provide insights into the regulations and policies that are announced or implemented to specifically address battery second use related issues.

 

The report is complemented with 8 full company profiles, as well as dozens of interviews with automotive companies like Nissan and BYD, energy storage companies like Connected Energy as well as technology start-ups such as Relectrify. IDTechEx has a unique position to cover this topic as the experienced analyst team has been following the second-life battery industry since 2014 and engaging closely with the market players.

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