Global Second Life Electric Vehicle Battery Market By Type (Lithium-Ion, Lead Acid, Sodium-Ion, and Nickel), By Vehicle Type (Passenger Car and Commercial Vehicles), By Application, By Region and Companies – Industry Segment Outlook, Market Assessment, Competition Scenario, Trends, and Forecast 2023-2032

Report Overview

The Global Second Life Electric Vehicle Battery Market size is expected to be worth around USD 13,774.00 Billion by 2032 from USD 367.6 Billion in 2022, growing at a CAGR of 45.00% during the forecast period from 2023 to 2032.

The second-life electric vehicle battery is used for recovering the recyclable materials from the battery at the end of its life and reusing it in different types of applications.

Electric vehicle batteries have a long life, large capacity, and high resistance to operating in extreme temperatures. Lithium-ion batteries in electric vehicles degrade fast in the first five years of operation. It can be used for decades in some cases. The use of second-life electric batteries in electric vehicles can lower the cost of electric vehicles.

Second-life electric vehicles battery is in high demand by electric vehicle manufacturers worldwide due to the use of second-life electric vehicle battery in various energy storage systems across different industries. This has surged the demand for second-life electric vehicle batteries across industries and boosted the growth of the market.

Driving Factors

Rising Awareness Of the Environment and the Implementation of Strict Regulations by the Government are Driving the Growth of the Second-life Electric Vehicle Battery Market

The rising inclination towards using electric vehicles is a primary driver of the second-life electric vehicle battery market. To comply with the strict rules and regulations on emission levels of vehicles by governments across the world, individuals are opting for electric vehicles. However, the disposal of the batteries used in electric vehicles is a big challenge. This has forced us to recycle and reuse these batteries to reduce environmental damage and lower the cost of electric vehicles. This is also increasing the demand for second-life electric vehicle batteries in the market. These factors are boosting the growth of the second-life electric vehicle battery market.

Second-life electric vehicle batteries are used to reduce harm to the environment by avoiding the excessive use of minerals like lithium, cobalt, and nickel in producing new batteries and also reducing the remaining waste material from the battery. Major electric vehicle manufacturers are using second-life electric vehicle batteries in different types of power storage systems in the companies. The rising demand for energy storage systems is driving the growth of the second-life electric vehicle battery market.

Restraining Factors

Strict Rules on the Transportation of Used Batteries are Hindering the Growth of the Market

The second-life electric vehicle batteries and their components can be used in many secondary applications other than their primary application as power storage in many industries. Governments across various countries have applied strict rules on the transportation and logistics of used second-life electric vehicle batteries to avoid this. When the battery pack of the second-life electric vehicle battery is removed from the electric vehicle, it is considered a toxic and hazardous good for transportation. These rules on the logistics of used second-life electric vehicle batteries are obstructing the growth of these batteries in the market.

Growth Opportunities

The Increase in Demand for Second-life Batteries for Power Storage Systems is Creating Lucrative Opportunities in the Market

With the rising demand for electric vehicles in the market, the demand for second-life electric vehicle batteries is also increasing it. The expanding use of second-life electric vehicle batteries in storage systems is expected to increase drastically in the upcoming years, thereby creating lucrative opportunities in the market for newcomers in the second-life electric vehicle battery market.

In addition, many start-ups and new companies are focusing on evaluating used batteries by checking their quality and recycling them for second-life usage in power storage systems across various industries. This is driving the growth of the second-life electric vehicle battery market by creating opportunities for new companies in the market.

Latest Trends

Major Companies are Focusing on the Development of Efficiency in These Batteries

Major original equipment manufacturers in the market are following the trend of launching different initiatives and pilot projects to develop and use second-life electric vehicle batteries. Many companies are reusing the used electric vehicle batteries in the power storage system for many industries and residential areas.

This trend of recycling batteries is driving the growth of the second-life electric vehicle battery market. Also, many major companies are focusing on developing advanced techniques to improve the efficiency of second-life batteries and increase the sales of these batteries. These key trends are anticipated to boost the second-life electric vehicle battery market in the upcoming years.

By Type Analysis

Lithium-Ion Batteries Dominate the Second-life Electric Vehicles Battery Market

Based on type, second-life electric vehicle batteries are classified into different types like lithium-ion, lead acid, sodium-ion, and nickel. From these types, lithium-ion batteries lead the market by covering a major revenue share in the market. Furthermore, lithium-ion batteries are anticipated to grow at a high CAGR during the forecast period.

The growth of this segment is due to the better dynamics of these batteries than the other batteries, like easy availability, lighter weight than other batteries in competition, and larger power storing battery capacity than others. These factors are driving the growth of the lithium-ion battery segment in the second-life electric vehicle battery market.

Also, the rising demand for power storage systems across various industries is increasing the demand for second-life lead acid batteries for the storage system. This is expected to boost the growth of the lead acid battery segment in the second-life electric vehicle battery market.

By Vehicle Type Analysis

Larger Capacity and Fast Charging of Commercial Vehicles Batteries is Driving the Growth of This Segment in the Market.

Second-life electric vehicle battery market is divided into passenger cars and commercial vehicles on the basis of vehicle type. Among these vehicle types, the commercial vehicles type batteries segment dominates over the passenger car segment. The rising demand for commercial vehicle batteries like electric bus batteries is anticipated to propel the growth of the market.

In addition, the growth of commercial vehicle batteries is due to the larger power storing capacity and faster charging of these batteries than passenger cars. These factors are driving the growth of the commercial vehicle battery segment in the second-life electric vehicle battery market.

By Application Analysis

Initiatives by the Telecom Industry for second-life batteries are driving the growth of base station applications in the second-life electric vehicles battery market

Second-life electric vehicle batteries for applications are categorized into base station, residential energy storage, electric vehicle charging, grid-scale energy storage, and low-speed electric vehicles. From these categories, the rising demand for second-life electric vehicle batteries in base stations has boosted the growth of the base station segment in the second-life electric vehicle battery market.

The growth of this segment is attributed to the developments and initiatives taken by the companies in the telecom industry to use second-life electric vehicle batteries in place of old lead acid batteries to lower the cost and increase the power storing capacity of the system. This is boosting the growth of the base station segment in the application of the second-life electric vehicle battery market.

The residential energy storage segment is anticipated to grow at a high CAGR through the forecast period. The rising demand for power storage systems in residential areas like apartments and societies is driving the growth of residential power storage systems in the second-life electric vehicle battery market.

Market Key Segments:

By Type

• Lithium-ion
• Lead Acid
• Sodium-ion
• Nickel

By Vehicle Type

• Passenger Car
• Commercial Vehicle

By Application

• Base Station
• Electric Vehicle Charging
• Grid-Scale Energy Storage
• Residential Energy Storage
• Low-Speed Electric Vehicle

COVID-19 Impact Analysis:

Halted Transportation and Production of Electric Vehicles During the Pandemic Decrease the Supply of Second-life Electric Vehicles Battery in the Market

The COVID-19 pandemic negatively affected the second-life electric vehicle battery market. The negative impact on the market was due to the halted transportation and restricted production facilities across the world. The outbreak of the pandemic stopped the production of electric vehicles in the automotive industry, which decreased the use of batteries in electric vehicles and thereby decreased the demand for the second-life electric vehicle battery market.

However, After the ease of COVID-19 restrictions, the increasing demand for electric vehicles and rising awareness of eco-friendly solutions have boosted the growth of the second-life electric vehicle battery market.

Regional Analysis:

Asia Pacific Dominates the Global Second-life Electric Vehicle Battery Market.

The Asia Pacific region leads the second-life electric vehicle battery market by accounting for the major revenue share of 34.8% in the global second-life electric vehicle battery market, and it is anticipated to continue the domination throughout the forecast period.

The growth of the Asia Pacific region is owing to the significant growth of the automotive industry in the region. Major countries like China and India in the Asia Pacific region are increasing the demand for electric vehicles, which is boosting the growth of the electric vehicles market in the region and thereby propelling the growth of the second-life electric vehicle battery market.

After Asia Pacific, North America is expected to grow moderately over the forecast period. The growth of this region is attributed to the rising demand for power storage systems in major countries like the United States and Canada in this region. The United States and Canada account for the major share in the growth of North America’s second-life electric vehicle battery market.

Key Regions and Countries:

• North America
  • The US
  • Canada
  • Mexico
• Western Europe
  • Germany
  • France
  • The UK
  • Spain
  • Italy
  • Portugal
  • Ireland
  • Austria
  • Switzerland
  • Benelux
  • Nordic
  • Rest of Western Europe
• Eastern Europe
  • Russia
  • Poland
  • The Czech Republic
  • Greece
  • Rest of Eastern Europe
• APAC
  • China
  • Japan
  • South Korea
  • India
  • Australia & New Zealand
  • Indonesia
  • Malaysia
  • Philippines
  • Singapore
  • Thailand
  • Vietnam
  • Rest of APAC
• Latin America
  • Brazil
  • Colombia
  • Chile
  • Argentina
  • Costa Rica
  • Rest of Latin America
• Middle East & Africa
  • Algeria
  • Egypt
  • Israel
  • Kuwait
  • Nigeria
  • Saudi Arabia
  • South Africa
  • Turkey
  • United Arab Emirates
  • Rest of MEA

Market Share and Key Player Analysis:

The global second-life electric vehicles market is fragmented into many small and large-scale companies. Major key players in the market are focusing on new business strategies to expand their business in various regions and strengthen their position in the market. Key players in the market are investing in researching and developing eco-friendly battery solutions to avoid environmental harm.

Many major companies are adopting strategies like mergers and acquisitions to expand their nosiness share in the global second-life electric vehicle battery market. Some of the major players in the second-life electric vehicle battery market are BeePlanet Factory, Mercedes-Benz Group, Renault Group, Nissan Motors Corporation, Hyundai Motor Company, RWE, Enel X S.r.l., Fortum Oyj, General Motor, Mitsubishi Motors Corporation, BELECTRIC, and other key players.

Key Players in the Second-life Electric Vehicles Battery Market:

• Hyundai Motor Company
• Mitsubishi Motors Corporation
• Nissan Motors Corporation
• Renault Group
• Mercedes-Benz Group
• BeePlanet Factory
• RWE AG
• Enel X S.r.l.
• Fortum Oyj
• BELECTRIC
• General Motor
• Other Key Players

Recent Developments

• In March 2022, Robert Bosch GmbH, Blue Park, and Mitsubishi Motors Corporation collaborated on the development of used electric vehicle batteries. Robert Bosch GmbH has offered its cloud-based technology for development, and Mitsubishi Motors Corporation is commercializing the products. Together they are focusing on the acceleration of deployment in used batteries.
• In August 2021, Underwriter Laboratories and Hyundai Motor Company partnered to develop and adopt second-life batteries in the usable energy storage systems in the company.

Report Scope: