Second Life EV Battery Market Forecasts to 2032 – Global Analysis By Battery Chemistry (Lithium-Ion, Nickel-Based and Lead-Acid), Source Type (Passenger EV Batteries, Commercial EV Batteries and Two-Wheeler & Micro-Mobility Batteries), Business Model, Tec
Description
According to Stratistics MRC, the Global Second Life EV Battery Market is accounted for $14.5 billion in 2025 and is expected to reach $213.0 billion by 2032 growing at a CAGR of 46.7% during the forecast period. A Second Life EV Battery refers to an electric vehicle (EV) battery that has reached the end of its automotive lifespan—typically when its capacity drops to around 70–80%—but still retains sufficient performance for alternative applications. Instead of being discarded, these batteries are repurposed for less demanding energy storage uses, such as stationary grid storage, renewable energy integration, or backup power systems. This approach extends the battery’s useful life, reduces environmental impact, and lowers energy storage costs. Second Life EV Batteries are a key component in the circular economy for EVs, promoting sustainability and resource efficiency while managing growing battery waste.
Market Dynamics:
Driver:
Increasing electric vehicle adoption
EVs generate large volumes of lithium-ion batteries that retain up to 70–80% of their original capacity after vehicle retirement. Utilities and industrial operators repurpose these batteries for load balancing peak shaving and renewable energy integration. Second-life batteries offer a lower-cost alternative to new storage systems with reduced environmental impact. Automotive OEMs and energy firms are forming partnerships to build circular supply chains and battery repurposing hubs. These developments are driving volume growth and infrastructure investment across second-life battery ecosystems.
Restraint:
Supply chain challenges
Collection sorting and testing of retired EV batteries require specialized logistics and diagnostic tools to ensure safety and performance. Lack of standardized protocols for battery grading and certification complicates reuse across different chemistries and form factors. Transportation regulations and hazardous material handling requirements increase operational complexity and cost. Fragmented ownership and data gaps across battery lifecycle stages hinder traceability and inventory management. These constraints continue to slow adoption across utilities OEMs and energy service providers.
Opportunity:
Cost-effective energy storage
Repurposed batteries offer significant cost savings compared to new lithium-ion systems while supporting sustainability goals and circular economy mandates. Use cases include backup power EV charging stations microgrids and renewable energy smoothing across solar and wind installations. Modular battery packs enable flexible deployment and capacity scaling across diverse environments. Governments and utilities are funding pilot programs and incentive schemes to accelerate second-life battery adoption. These trends are expanding market access and operational viability across energy storage networks.
Threat:
Competition from new battery technologies
Emerging chemistries such as solid-state sodium-ion and flow batteries offer higher energy density longer lifespans and improved safety profiles. OEMs and energy firms may prioritize next-generation systems for future deployments reducing demand for repurposed lithium-ion units. Technological uncertainty and rapid innovation cycles complicate strategic planning and infrastructure alignment. Market preference for high-performance and warranty-backed solutions may limit second-life battery uptake in critical applications. These risks continue to challenge differentiation and scalability across second-life battery providers.
Covid-19 Impact:
The pandemic disrupted EV production battery recycling and energy storage projects across global markets. Lockdowns and supply chain interruptions delayed battery retirement collection and repurposing workflows. However post-pandemic recovery strategies emphasized sustainability and energy resilience driving renewed interest in second-life battery solutions. Utilities and OEMs accelerated pilot deployments to support grid stability and renewable integration. Public awareness of resource efficiency and circular economy principles increased across consumer and policy segments. These shifts are reinforcing long-term investment in second-life battery infrastructure and regulatory support
The refurbishment & resale segment is expected to be the largest during the forecast period
The refurbishment & resale segment is expected to account for the largest market share during the forecast period due to its central role in enabling battery grading reconditioning and redistribution across energy and mobility sectors. Specialized firms test and repackage retired EV batteries for secondary use in stationary storage and low-speed vehicles. Integration with battery management systems and performance analytics ensures safety and reliability across diverse applications. Demand for certified refurbished units is rising across commercial industrial and residential segments. These capabilities are driving segment dominance across second-life battery supply chains
The lithium-ion segment is expected to have the highest CAGR during the forecast period
Over the forecast period, the lithium-ion segment is predicted to witness the highest growth rate as the dominant chemistry used in EVs and energy storage systems globally. High energy density long cycle life and widespread availability make lithium-ion batteries ideal for second-life applications. Advances in diagnostic tools and repurposing techniques improve performance predictability and safety across reused packs. Demand for lithium-ion storage is rising across grid support telecom backup and EV charging infrastructure. These dynamics are accelerating growth across lithium-ion repurposing and deployment platforms.
Region with largest share:
During the forecast period, the North America region is expected to hold the largest market share due to its mature EV market regulatory clarity and energy storage investment. U.S. and Canadian utilities deploy second-life batteries across grid stabilization peak shaving and renewable integration projects. Automotive OEMs and recyclers establish regional hubs for battery collection testing and resale. Federal and state programs support circular economy initiatives and battery reuse incentives. Presence of leading EV manufacturers and energy firms drives innovation and commercialization. These factors are reinforcing North America’s leadership in second-life EV battery deployment.
Region with highest CAGR:
Over the forecast period, the Asia Pacific region is anticipated to exhibit the highest CAGR as EV penetration energy demand and sustainability mandates converge across urban and industrial regions. Countries like China India Japan and South Korea scale second-life battery platforms across telecom infrastructure microgrids and public transit systems. Government-backed programs support battery repurposing standards pilot projects and startup incubation. Local firms launch modular and low-cost solutions tailored to regional energy needs and grid conditions. Demand for accessible and scalable storage is rising across rural electrification and renewable integration initiatives. These trends are accelerating regional growth across second-life battery ecosystems.
Key players in the market
Some of the key players in Second Life EV Battery Market include BMW, Nissan, Tesla, General Motors, Volkswagen, Renault, Mercedes-Benz Group AG, Hyundai Motor Company, Toyota Motor Corporation, BYD Company Limited, Stellantis N.V., RePurpose Energy, B2U Storage Solutions, Connected Energy and BeePlanet Factory.
Key Developments:
In July 2025, Tesla was highlighted in the HTF Market Intelligence report as a key player in the second-life battery market, alongside LG Chem and CATL. Tesla continues collaborating with energy utilities and commercial clients to repurpose retired EV batteries into stationary storage systems, supporting grid resilience and renewable integration.
In June 2025, BMW unveiled its Neue Klasse platform, which includes modular battery packs designed for easy disassembly and second-life repurposing. The platform debuts with the iX3 Sports Activity Vehicle and supports faster charging, reduced production costs, and enhanced recyclability. This marks a strategic shift toward sustainable EV architecture.
Battery Chemistries Covered:
• Lithium-Ion
• Nickel-Based
• Lead-Acid
Source Types Covered:
• Passenger EV Batteries
• Commercial EV Batteries
• Two-Wheeler & Micro-Mobility Batteries
Business Models Covered:
• Battery Leasing & Subscription
• Refurbishment & Resale
• Energy-as-a-Service (EaaS)
• OEM-Utility Partnerships
• Other Business Models
Technologies Covered:
• Battery Chemistry Overview
• Lithium-Ion (LFP, NMC, NCA)
• Nickel-Based
• Lead-Acid
• Battery Health Diagnostics & Repurposing Techniques
• Safety and Performance Considerations
• Other Technologies
Applications Covered:
• Automotive
• EV Charging Infrastructure Support
• Low-Speed Electric Vehicles
• Non-Automotive
• Renewable Energy Storage (Solar, Wind)
• Grid Stabilization & Frequency Regulation
• Commercial & Industrial Backup
• Residential Energy Storage
• Telecom & Remote Area Power Supply
• Other Applications
Regions Covered:
• North America
US
Canada
Mexico
• Europe
Germany
UK
Italy
France
Spain
Rest of Europe
• Asia Pacific
Japan
China
India
Australia
New Zealand
South Korea
Rest of Asia Pacific
• South America
Argentina
Brazil
Chile
Rest of South America
• Middle East & Africa
Saudi Arabia
UAE
Qatar
South Africa
Rest of Middle East & Africa
What our report offers:
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2024, 2025, 2026, 2028, and 2032
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements
Market Dynamics:
Driver:
Increasing electric vehicle adoption
EVs generate large volumes of lithium-ion batteries that retain up to 70–80% of their original capacity after vehicle retirement. Utilities and industrial operators repurpose these batteries for load balancing peak shaving and renewable energy integration. Second-life batteries offer a lower-cost alternative to new storage systems with reduced environmental impact. Automotive OEMs and energy firms are forming partnerships to build circular supply chains and battery repurposing hubs. These developments are driving volume growth and infrastructure investment across second-life battery ecosystems.
Restraint:
Supply chain challenges
Collection sorting and testing of retired EV batteries require specialized logistics and diagnostic tools to ensure safety and performance. Lack of standardized protocols for battery grading and certification complicates reuse across different chemistries and form factors. Transportation regulations and hazardous material handling requirements increase operational complexity and cost. Fragmented ownership and data gaps across battery lifecycle stages hinder traceability and inventory management. These constraints continue to slow adoption across utilities OEMs and energy service providers.
Opportunity:
Cost-effective energy storage
Repurposed batteries offer significant cost savings compared to new lithium-ion systems while supporting sustainability goals and circular economy mandates. Use cases include backup power EV charging stations microgrids and renewable energy smoothing across solar and wind installations. Modular battery packs enable flexible deployment and capacity scaling across diverse environments. Governments and utilities are funding pilot programs and incentive schemes to accelerate second-life battery adoption. These trends are expanding market access and operational viability across energy storage networks.
Threat:
Competition from new battery technologies
Emerging chemistries such as solid-state sodium-ion and flow batteries offer higher energy density longer lifespans and improved safety profiles. OEMs and energy firms may prioritize next-generation systems for future deployments reducing demand for repurposed lithium-ion units. Technological uncertainty and rapid innovation cycles complicate strategic planning and infrastructure alignment. Market preference for high-performance and warranty-backed solutions may limit second-life battery uptake in critical applications. These risks continue to challenge differentiation and scalability across second-life battery providers.
Covid-19 Impact:
The pandemic disrupted EV production battery recycling and energy storage projects across global markets. Lockdowns and supply chain interruptions delayed battery retirement collection and repurposing workflows. However post-pandemic recovery strategies emphasized sustainability and energy resilience driving renewed interest in second-life battery solutions. Utilities and OEMs accelerated pilot deployments to support grid stability and renewable integration. Public awareness of resource efficiency and circular economy principles increased across consumer and policy segments. These shifts are reinforcing long-term investment in second-life battery infrastructure and regulatory support
The refurbishment & resale segment is expected to be the largest during the forecast period
The refurbishment & resale segment is expected to account for the largest market share during the forecast period due to its central role in enabling battery grading reconditioning and redistribution across energy and mobility sectors. Specialized firms test and repackage retired EV batteries for secondary use in stationary storage and low-speed vehicles. Integration with battery management systems and performance analytics ensures safety and reliability across diverse applications. Demand for certified refurbished units is rising across commercial industrial and residential segments. These capabilities are driving segment dominance across second-life battery supply chains
The lithium-ion segment is expected to have the highest CAGR during the forecast period
Over the forecast period, the lithium-ion segment is predicted to witness the highest growth rate as the dominant chemistry used in EVs and energy storage systems globally. High energy density long cycle life and widespread availability make lithium-ion batteries ideal for second-life applications. Advances in diagnostic tools and repurposing techniques improve performance predictability and safety across reused packs. Demand for lithium-ion storage is rising across grid support telecom backup and EV charging infrastructure. These dynamics are accelerating growth across lithium-ion repurposing and deployment platforms.
Region with largest share:
During the forecast period, the North America region is expected to hold the largest market share due to its mature EV market regulatory clarity and energy storage investment. U.S. and Canadian utilities deploy second-life batteries across grid stabilization peak shaving and renewable integration projects. Automotive OEMs and recyclers establish regional hubs for battery collection testing and resale. Federal and state programs support circular economy initiatives and battery reuse incentives. Presence of leading EV manufacturers and energy firms drives innovation and commercialization. These factors are reinforcing North America’s leadership in second-life EV battery deployment.
Region with highest CAGR:
Over the forecast period, the Asia Pacific region is anticipated to exhibit the highest CAGR as EV penetration energy demand and sustainability mandates converge across urban and industrial regions. Countries like China India Japan and South Korea scale second-life battery platforms across telecom infrastructure microgrids and public transit systems. Government-backed programs support battery repurposing standards pilot projects and startup incubation. Local firms launch modular and low-cost solutions tailored to regional energy needs and grid conditions. Demand for accessible and scalable storage is rising across rural electrification and renewable integration initiatives. These trends are accelerating regional growth across second-life battery ecosystems.
Key players in the market
Some of the key players in Second Life EV Battery Market include BMW, Nissan, Tesla, General Motors, Volkswagen, Renault, Mercedes-Benz Group AG, Hyundai Motor Company, Toyota Motor Corporation, BYD Company Limited, Stellantis N.V., RePurpose Energy, B2U Storage Solutions, Connected Energy and BeePlanet Factory.
Key Developments:
In July 2025, Tesla was highlighted in the HTF Market Intelligence report as a key player in the second-life battery market, alongside LG Chem and CATL. Tesla continues collaborating with energy utilities and commercial clients to repurpose retired EV batteries into stationary storage systems, supporting grid resilience and renewable integration.
In June 2025, BMW unveiled its Neue Klasse platform, which includes modular battery packs designed for easy disassembly and second-life repurposing. The platform debuts with the iX3 Sports Activity Vehicle and supports faster charging, reduced production costs, and enhanced recyclability. This marks a strategic shift toward sustainable EV architecture.
Battery Chemistries Covered:
• Lithium-Ion
• Nickel-Based
• Lead-Acid
Source Types Covered:
• Passenger EV Batteries
• Commercial EV Batteries
• Two-Wheeler & Micro-Mobility Batteries
Business Models Covered:
• Battery Leasing & Subscription
• Refurbishment & Resale
• Energy-as-a-Service (EaaS)
• OEM-Utility Partnerships
• Other Business Models
Technologies Covered:
• Battery Chemistry Overview
• Lithium-Ion (LFP, NMC, NCA)
• Nickel-Based
• Lead-Acid
• Battery Health Diagnostics & Repurposing Techniques
• Safety and Performance Considerations
• Other Technologies
Applications Covered:
• Automotive
• EV Charging Infrastructure Support
• Low-Speed Electric Vehicles
• Non-Automotive
• Renewable Energy Storage (Solar, Wind)
• Grid Stabilization & Frequency Regulation
• Commercial & Industrial Backup
• Residential Energy Storage
• Telecom & Remote Area Power Supply
• Other Applications
Regions Covered:
• North America
US
Canada
Mexico
• Europe
Germany
UK
Italy
France
Spain
Rest of Europe
• Asia Pacific
Japan
China
India
Australia
New Zealand
South Korea
Rest of Asia Pacific
• South America
Argentina
Brazil
Chile
Rest of South America
• Middle East & Africa
Saudi Arabia
UAE
Qatar
South Africa
Rest of Middle East & Africa
What our report offers:
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2024, 2025, 2026, 2028, and 2032
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements
Table of Contents
200 Pages
- 1 Executive Summary
- 2 Preface
- 2.1 Abstract
- 2.2 Stake Holders
- 2.3 Research Scope
- 2.4 Research Methodology
- 2.4.1 Data Mining
- 2.4.2 Data Analysis
- 2.4.3 Data Validation
- 2.4.4 Research Approach
- 2.5 Research Sources
- 2.5.1 Primary Research Sources
- 2.5.2 Secondary Research Sources
- 2.5.3 Assumptions
- 3 Market Trend Analysis
- 3.1 Introduction
- 3.2 Drivers
- 3.3 Restraints
- 3.4 Opportunities
- 3.5 Threats
- 3.6 Technology Analysis
- 3.7 Application Analysis
- 3.8 Emerging Markets
- 3.9 Impact of Covid-19
- 4 Porters Five Force Analysis
- 4.1 Bargaining power of suppliers
- 4.2 Bargaining power of buyers
- 4.3 Threat of substitutes
- 4.4 Threat of new entrants
- 4.5 Competitive rivalry
- 5 Global Second Life EV Battery Market, By Battery Chemistry
- 5.1 Introduction
- 5.2 Lithium-Ion
- 5.3 Nickel-Based
- 5.4 Lead-Acid
- 6 Global Second Life EV Battery Market, By Source Type
- 6.1 Introduction
- 6.2 Passenger EV Batteries
- 6.3 Commercial EV Batteries
- 6.4 Two-Wheeler & Micro-Mobility Batteries
- 7 Global Second Life EV Battery Market, By Business Model
- 7.1 Introduction
- 7.2 Battery Leasing & Subscription
- 7.3 Refurbishment & Resale
- 7.4 Energy-as-a-Service (EaaS)
- 7.5 OEM-Utility Partnerships
- 7.6 Other Business Models
- 8 Global Second Life EV Battery Market, By Technology
- 8.1 Introduction
- 8.2 Battery Chemistry Overview
- 8.3 Lithium-Ion (LFP, NMC, NCA)
- 8.4 Nickel-Based
- 8.5 Lead-Acid
- 8.6 Battery Health Diagnostics & Repurposing Techniques
- 8.7 Safety and Performance Considerations
- 8.8 Other Technologies
- 9 Global Second Life EV Battery Market, By Application
- 9.1 Introduction
- 9.2 Automotive
- 9.3 EV Charging Infrastructure Support
- 9.4 Low-Speed Electric Vehicles
- 9.5 Non-Automotive
- 9.6 Renewable Energy Storage (Solar, Wind)
- 9.7 Grid Stabilization & Frequency Regulation
- 9.8 Commercial & Industrial Backup
- 9.9 Residential Energy Storage
- 9.10 Telecom & Remote Area Power Supply
- 9.11 Other Applications
- 10 Global Second Life EV Battery Market, By Geography
- 10.1 Introduction
- 10.2 North America
- 10.2.1 US
- 10.2.2 Canada
- 10.2.3 Mexico
- 10.3 Europe
- 10.3.1 Germany
- 10.3.2 UK
- 10.3.3 Italy
- 10.3.4 France
- 10.3.5 Spain
- 10.3.6 Rest of Europe
- 10.4 Asia Pacific
- 10.4.1 Japan
- 10.4.2 China
- 10.4.3 India
- 10.4.4 Australia
- 10.4.5 New Zealand
- 10.4.6 South Korea
- 10.4.7 Rest of Asia Pacific
- 10.5 South America
- 10.5.1 Argentina
- 10.5.2 Brazil
- 10.5.3 Chile
- 10.5.4 Rest of South America
- 10.6 Middle East & Africa
- 10.6.1 Saudi Arabia
- 10.6.2 UAE
- 10.6.3 Qatar
- 10.6.4 South Africa
- 10.6.5 Rest of Middle East & Africa
- 11 Key Developments
- 11.1 Agreements, Partnerships, Collaborations and Joint Ventures
- 11.2 Acquisitions & Mergers
- 11.3 New Product Launch
- 11.4 Expansions
- 11.5 Other Key Strategies
- 12 Company Profiling
- 12.1 BMW
- 12.2 Nissan
- 12.3 Tesla
- 12.4 General Motors
- 12.5 Volkswagen
- 12.6 Renault
- 12.7 Mercedes-Benz Group AG
- 12.8 Hyundai Motor Company
- 12.9 Toyota Motor Corporation
- 12.10 BYD Company Limited
- 12.11 Stellantis N.V.
- 12.12 RePurpose Energy
- 12.13 B2U Storage Solutions
- 12.14 Connected Energy
- 12.15 BeePlanet Factory
- List of Tables
- Table 1 Global Second Life EV Battery Market Outlook, By Region (2024-2032) ($MN)
- Table 2 Global Second Life EV Battery Market Outlook, By Battery Chemistry (2024-2032) ($MN)
- Table 3 Global Second Life EV Battery Market Outlook, By Lithium-Ion (2024-2032) ($MN)
- Table 4 Global Second Life EV Battery Market Outlook, By Nickel-Based (2024-2032) ($MN)
- Table 5 Global Second Life EV Battery Market Outlook, By Lead-Acid (2024-2032) ($MN)
- Table 6 Global Second Life EV Battery Market Outlook, By Source Type (2024-2032) ($MN)
- Table 7 Global Second Life EV Battery Market Outlook, By Passenger EV Batteries (2024-2032) ($MN)
- Table 8 Global Second Life EV Battery Market Outlook, By Commercial EV Batteries (2024-2032) ($MN)
- Table 9 Global Second Life EV Battery Market Outlook, By Two-Wheeler & Micro-Mobility Batteries (2024-2032) ($MN)
- Table 10 Global Second Life EV Battery Market Outlook, By Business Model (2024-2032) ($MN)
- Table 11 Global Second Life EV Battery Market Outlook, By Battery Leasing & Subscription (2024-2032) ($MN)
- Table 12 Global Second Life EV Battery Market Outlook, By Refurbishment & Resale (2024-2032) ($MN)
- Table 13 Global Second Life EV Battery Market Outlook, By Energy-as-a-Service (EaaS) (2024-2032) ($MN)
- Table 14 Global Second Life EV Battery Market Outlook, By OEM-Utility Partnerships (2024-2032) ($MN)
- Table 15 Global Second Life EV Battery Market Outlook, By Other Business Models (2024-2032) ($MN)
- Table 16 Global Second Life EV Battery Market Outlook, By Technology (2024-2032) ($MN)
- Table 17 Global Second Life EV Battery Market Outlook, By Battery Chemistry Overview (2024-2032) ($MN)
- Table 18 Global Second Life EV Battery Market Outlook, By Lithium-Ion (LFP, NMC, NCA) (2024-2032) ($MN)
- Table 19 Global Second Life EV Battery Market Outlook, By Nickel-Based (2024-2032) ($MN)
- Table 20 Global Second Life EV Battery Market Outlook, By Lead-Acid (2024-2032) ($MN)
- Table 21 Global Second Life EV Battery Market Outlook, By Battery Health Diagnostics & Repurposing Techniques (2024-2032) ($MN)
- Table 22 Global Second Life EV Battery Market Outlook, By Safety and Performance Considerations (2024-2032) ($MN)
- Table 23 Global Second Life EV Battery Market Outlook, By Other Technologies (2024-2032) ($MN)
- Table 24 Global Second Life EV Battery Market Outlook, By Application (2024-2032) ($MN)
- Table 25 Global Second Life EV Battery Market Outlook, By Automotive (2024-2032) ($MN)
- Table 26 Global Second Life EV Battery Market Outlook, By EV Charging Infrastructure Support (2024-2032) ($MN)
- Table 27 Global Second Life EV Battery Market Outlook, By Low-Speed Electric Vehicles (2024-2032) ($MN)
- Table 28 Global Second Life EV Battery Market Outlook, By Non-Automotive (2024-2032) ($MN)
- Table 29 Global Second Life EV Battery Market Outlook, By Renewable Energy Storage (Solar, Wind) (2024-2032) ($MN)
- Table 30 Global Second Life EV Battery Market Outlook, By Grid Stabilization & Frequency Regulation (2024-2032) ($MN)
- Table 31 Global Second Life EV Battery Market Outlook, By Commercial & Industrial Backup (2024-2032) ($MN)
- Table 32 Global Second Life EV Battery Market Outlook, By Residential Energy Storage (2024-2032) ($MN)
- Table 33 Global Second Life EV Battery Market Outlook, By Telecom & Remote Area Power Supply (2024-2032) ($MN)
- Table 34 Global Second Life EV Battery Market Outlook, By Other Applications (2024-2032) ($MN)
- Note: Tables for North America, Europe, APAC, South America, and Middle East & Africa Regions are also represented in the same manner as above.
Pricing
Currency Rates
Questions or Comments?
Our team has the ability to search within reports to verify it suits your needs. We can also help maximize your budget by finding sections of reports you can purchase.
