The second-life electric vehicle battery market will grow to $4.2 billion by 2025

According to a recent report by research firm Circular Energy Storage, the global end-of-life lithium-ion battery market is estimated to be worth $1.
3 billion
this year.

The second-life electric vehicle battery market will grow to $4.
2 billion by 2025

Analysts said $1.
1 billion could be generated by recycling materials, with the remaining $230 million going to the repair and refurbishment sector
.

As EV sales grow in China, the report estimates that 70% of the market value of "second life" batteries will come from China, with South Korea (16% share) being the second largest contributor to this market
.

The battery recycling market is expected to grow to $3.
5 billion by 2025, and the "second life" battery market could reach $4.
2 billion by 2025, analysts said.

While recycled batteries are common in portable devices, they are achieved in EV batteries through "second life" applications, including for energy storage systems
.
The report states that EV batteries have the best characteristics
in terms of capacity and remaining life cycle that can be reused for energy storage.

For this type of end-of-life use, EV batteries are placed in
residential and utility-scale static energy storage systems.

New revenue streams for EV manufacturers

Early adopters of electric vehicles such as Nissan, Renault and BMW could derive new revenue streams
from the second life potential of power units, the report said.

By 2025, "second-life" battery applications in energy storage systems could reach 42 GWh of capacity, 80% of which is in China, which will be half
of China's predicted installed battery storage capacity.

The report also highlights that improved manufacturing processes related to standardization make this type of second use possible at a better cost, which will further increase revenue
for stakeholders in the market.

Analysts detailed the business case
for deploying "second life" batteries in the UK.
The case study speculates that suppliers can earn around £50,000 per kilowatt per year with reserve capacity for multi-megawatt storage systems
.
A 100-megawatt plant with 7,000 Nissan Leaf batteries will generate $6.
7 million in annual revenue, equivalent to $965 per battery
per year.
For an expected five-year remaining life cycle, each battery will generate $4,825 in earnings
.

Reusing batteries reduces costs

In Germany, the business case will be more attractive because the frequency regulation price is much
higher.
In Germany, a similarly laid out plant would generate $18 million a year, and each battery would generate about $14,130 in
its five-year second life.

This research will be good news
for many EV battery manufacturers who need to recover their products and manage disposal and recycling.
Longer service life equals less battery recycling, which equates to lower costs, which is another boost to the balance sheet
.

A series of automakers have announced partnerships with battery energy storage operators to supply second-generation EV batteries
.
Since batteries usually maintain 60% of their original capacity, they have a good enough shape for frequency response, since the discharge cycle of this type of energy is usually extended to a few minutes and rarely reaches an hour or more
.

Bloomberg New Energy Finance estimates that by 2030, the global energy storage market will exceed 305 GWh of capacity, up from 6.
25 GWh
last year.

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