Global EV Battery Reuse Market Report and Forecast 2024-2032

Global EV Battery Reuse Market Report and Forecast 2024-2032

Global EV Battery Reuse Market Report and Forecast 2024-2032

Market Outlook

According to the report by Expert Market Research (EMR), the global EV battery reuse market size reached approximately USD 350 million in 2023. The market is projected to grow at a CAGR of 26.5% between 2024 and 2032. Aided by the growing popularity of electric vehicles and the emergence of the Battery-as-a-Service (BaaS) business model, the market is projected to reach a value of nearly USD 2,910 million by 2032.

EV battery reuse, also known as battery second life, refers to the practice of repurposing electric vehicle (EV) batteries for new applications after they have reached the end of their useful life in automotive applications. While an EV battery might no longer meet the performance standards required for vehicle use, typically when its capacity falls below 70% to 80% of its original capacity, it can still hold and discharge a significant amount of electricity. This residual capacity makes these batteries suitable for less demanding applications.

The primary driver of the EV battery reuse market value is the global acceleration in electric vehicle adoption. This shift, motivated by a collective desire to reduce carbon emissions and combat climate change, has significantly increased the availability of EV batteries for secondary use. Governments worldwide are supporting this transition through incentives, policy frameworks, and investments in EV infrastructure, thereby fuelling the demand for reused EV batteries. This trend is not just a testament to the growing environmental consciousness but also to the economic and operational efficiencies that EVs offer over traditional internal combustion engine vehicles.

Parallel to the expansion of electric vehicle market, advancements in battery technology and management systems play a major role in advancing the market growth. Innovations in lithium-ion batteries, along with the development of sophisticated battery health assessment tools and diagnostic technologies, have significantly improved the viability of reusing EV batteries. These technological advancements ensure that second-life batteries are safe, reliable, and efficient for various applications, thereby extending their lifecycle and reducing waste.

A significant EV battery reuse market trend is the burgeoning demand for stationary energy storage solutions. As the world moves towards greater reliance on renewable energy sources, the need for efficient storage solutions to manage supply and demand fluctuations has become critical. Reused EV batteries, with their high capacity and longevity, offer a sustainable and cost-effective solution for grid storage, renewable energy integration, and backup power systems. This not only aids in stabilising the grid but also in enhancing energy security and sustainability.

The emergence of Battery-as-a-Service (BaaS) models significantly enhances the global EV battery reuse market expansion. BaaS models facilitate a seamless transition of batteries from their primary use in electric vehicles to secondary applications, optimising the lifecycle value of these batteries. This innovative approach supports a circular economy by promoting the reuse and recycling of batteries, thereby minimising environmental impact and fostering sustainability in the EV sector.

The global landscape of the EV battery reuse market is characterised by dynamic growth across various regions, with the Asia Pacific at the forefront. This region's dominance is attributed to its rapidly expanding electric vehicle market, led by countries such as China, Japan, and South Korea. These nations are not only significant markets for electric vehicles but also hubs for technological innovation in battery technology and recycling processes.

While the market is poised for substantial growth, it faces challenges, particularly concerning battery degradation, logistics, and regulatory standards for second-life battery applications. Addressing these challenges requires coordinated efforts from stakeholders across the value chain, including advancements in battery refurbishment technologies, the development of standardised testing and certification processes, and the establishment of clear regulatory frameworks.

Market Segmentation

The global EV battery reuse market can be divided based on battery type, source, vehicle type, application, and region.

Market Breakup by Battery Type

• Lithium-manganese oxide
• Lithium-iron phosphate
• Lithium-titanate oxide
• Lithium-nickel-cobalt-aluminium oxide
• Lithium-nickel-manganese cobalt

Market Breakup by Source

• Hybrid Electric Vehicle
• Battery Electric Vehicles
• Fuel cell Electric Vehicle
• Plug-in Hybrid Electric Vehicle

Market Breakup by Vehicle Type

• Passenger Cars
• Commercial Vehicles

Market Breakup by Application

• Energy Storage
• Base Stations
• Low Speed Vehicles
• EV Charging

Market Breakup by Region

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East and Africa

Competitive Landscape

The EMR report looks into the market shares, plant turnarounds, capacities, investments, and mergers and acquisitions, among other major developments, of the leading companies operating in the global EV battery reuse market. Some of the major players explored in the report by Expert Market Research are as follows:

• General Motors Co.
• BMW AG
• LG Corporation
• Ecobat, LLC
• ATC Drivetrain, Inc.
• Stena Metall AB (BatteryLoop)
• Ganfeng Lithium Group Co., Ltd.
• Li-Cycle Holdings Corp.
• Redwood Materials Inc.
• Lithion Technologies
• Others

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*We at Expert Market Research always strive to provide you with the latest information. The numbers in the article are only indicative and may be different from the actual report.