Second-Life Battery Market Size and Outlook 2031

Report Description

Forecast Period	2027-2031
Market Size (2025)	USD 760.29 Million
CAGR (2026-2031)	24.62%
Fastest Growing Segment	Medical Equipment
Largest Market	Asia Pacific
Market Size (2031)	USD 2847.78 Million

Market Overview

The Global Second-Life Battery Market will grow from USD 760.29 Million in 2025 to USD 2847.78 Million by 2031 at a 24.62% CAGR. The Global Second Life Battery Market consists of the repurposing of retired electric vehicle batteries that retain sufficient residual capacity for stationary energy storage applications rather than immediate recycling. This sector is primarily driven by the economic imperative to maximize the value of battery assets and stringent environmental regulations promoting circular economy frameworks. As electric mobility expands, the volume of feedstock available for grid stabilization and backup power solutions grows proportionately. According to the International Energy Agency, in 2024, total battery demand in the energy sector crossed 1 terawatt hour, creating a substantial baseline of future inventory for these repurposing initiatives.

However, a major challenge impeding rapid market expansion is the lack of standardized protocols for assessing battery health and safety. The technical complexity and high cost associated with evaluating the remaining useful life of diverse battery chemistries and pack designs create economic uncertainty and hinder widespread industrial adoption.

Key Market Drivers

Exponential Growth in Retired Electric Vehicle Battery Availability functions as the primary supply-side catalyst for the sector, fundamentally transforming the market from a niche concept into an industrial necessity. As early-generation electric fleets complete their automotive lifecycles, they generate a predictable and rapidly expanding feedstock of battery modules that retain significant residual capacity. This shift from sporadic availability to a steady stream of inventory allows repurposing facilities to scale operations and move beyond pilot projects, turning a potential waste liability into a valuable asset class. According to the Volta Foundation, January 2024, in the '2023 Battery Report', it is projected that the global market could see between 200 and 300 gigawatt-hours of electric vehicle batteries retired annually by 2030, creating a massive asset base for second-life utilization.

Simultaneously, the Rising Demand for Cost-Effective Stationary Energy Storage Solutions acts as the critical demand-side driver. Second-life batteries offer a substantial economic advantage over new units, significantly lowering the barrier to entry for commercial and industrial energy storage projects. This cost efficiency is particularly vital for applications such as peak shaving and renewable integration, where the premium of new lithium-ion cells often diminishes return on investment. According to Cenex Nederland, August 2024, in the 'Second Life of E-Truck Batteries' report, repurposing end-of-first-life electric truck batteries for stationary applications can reduce the capital cost of charging infrastructure by approximately 25%. Furthermore, reflecting the widening scope of this sector, according to the International Energy Agency, in 2024, the global demand for batteries dedicated to stationary storage is forecast to reach roughly 400 gigawatt-hours by 2030, establishing a vast target market for these repurposed assets.

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Key Market Challenges

The absence of standardized protocols for assessing battery health and safety constitutes a significant barrier to the industrial scalability of the second-life battery sector. Without uniform diagnostic standards, repurposing facilities are forced to conduct time-intensive and costly evaluations on individual battery packs to verify their residual capacity and safety profiles. This lack of interoperability between original equipment manufacturers and repurposing entities creates economic uncertainty, as the labor and technical resources required to grade diverse battery chemistries often outweigh the potential resale value of the repurposed unit. Consequently, this friction prevents the market from transitioning from a niche, manual industry to a streamlined, automated sector capable of handling high volumes.

This operational bottleneck is particularly acute given the rapid accumulation of battery assets requiring management. According to the Global Battery Alliance, in 2024, global battery demand was forecast to surge from 937 gigawatt-hours in 2023 to 7.4 terawatt-hours by 2040. Dealing with this projected magnitude of inventory is logistically impossible without a harmonized framework for health assessment. As long as these technical inefficiencies persist, the market struggles to process the available feedstock at a pace that matches the speed of electric vehicle retirement, directly hampering the sector's overall growth potential.

Key Market Trends

The Adoption of Digital Battery Passports for Traceability is transforming the sector by establishing transparent digital threads for retired assets. These electronic records address the critical difficulty of verifying battery chemistry and residual health without expensive physical testing, directly facilitating compliance with frameworks like the EU Battery Regulation. By standardizing data on manufacturing origin and state-of-health, these passports reduce the financial risk for repurposing entities and accelerate the commercialization of secondary storage systems. According to the Global Battery Alliance, November 2024, in the 'Global Battery Alliance Unveils Results of Wave Two Battery Passport Pilots' announcement, cell manufacturers representing over 80% of the global electric vehicle battery market share mobilized their supply chains to report on harmonized sustainability expectations, signaling a massive shift toward industry-wide interoperability.

Simultaneously, Strategic Alliances Between Automakers and Storage Providers are rapidly emerging to secure the supply chain for repurposed modules. These partnerships allow original equipment manufacturers to manage end-of-life liabilities while providing storage developers with a consistent, graded feedstock for stationary applications. This vertical integration moves the sector away from transactional spot-market sourcing toward long-term agreements that stabilize pricing and inventory levels. Validating the economic viability of this approach, according to Stellantis, February 2024, in the 'Stellantis’ Circular Economy Business Unit Reports Sales Growth' press release, the company's dedicated division for remanufacturing and repurposing achieved an 18% year-on-year sales growth in 2023, demonstrating the tangible revenue potential of integrated lifecycle management strategies.

Segmental Insights

The Medical Equipment segment is currently identified as the fastest-growing category in the Global Second-Life Battery Market. This rapid expansion is primarily driven by the healthcare sector's increasing requirement for cost-effective uninterruptible power supply systems to support essential diagnostic tools and non-critical infrastructure. Hospitals and medical facilities are adopting repurposed battery packs to ensure operational continuity during power outages while managing strict budget constraints. Furthermore, the integration of these sustainable energy solutions helps healthcare providers comply with rigorous environmental mandates, thereby accelerating the deployment of second-life batteries across the global medical landscape.

Regional Insights

Asia Pacific holds the leading position in the global second-life battery market, driven largely by the extensive adoption of electric vehicles in China. This high vehicle density ensures a consistent volume of retired batteries suitable for repurposing in stationary energy storage applications. The market expansion is further supported by government initiatives promoting sustainable practices and circular supply chains. Notably, policies from China's Ministry of Industry and Information Technology mandate comprehensive battery tracking and recycling, fostering a structured environment for reuse. These factors create a strong infrastructure that solidifies the region's dominance in the sector.

Recent Developments

In September 2025, Stellantis advanced its circular economy strategy by showcasing the AVATHOR ONE, a reuse application for retired high-voltage batteries, at an automotive exhibition in Turin. The company’s SUSTAINera business unit highlighted its ongoing collaboration with utility partners to implement second-life battery storage systems, including a significant project with Enel X at Rome Fiumicino Airport. This facility, which had been operative since June 2025, utilized repurposed vehicle batteries to store renewable energy and reduce carbon emissions. These initiatives underscored the automaker's commitment to extending the lifecycle of its electric vehicle components through industrial partnerships.
In November 2024, Element Energy announced the commissioning of a major second-life battery energy storage system in Texas, which it described as the largest project of its kind connected to the electricity grid. The company also revealed a new strategic partnership with LG Energy Solution Vertech to supply turnkey energy storage solutions using repurposed batteries. This 53 MWh project utilized 900 retired electric vehicle battery packs and was designed to provide power to the ERCOT grid. The collaboration with the system integrator aimed to scale the commercial deployment of Element Energy’s proprietary battery management technology for future utility-scale applications.
In November 2024, Naturgy, in collaboration with the City of Energy Foundation (CIUDEN), successfully completed the initial testing phase for a new energy storage system powered by second-life batteries. The project, which utilized retired battery modules from Mercedes-Benz electric vehicles, was executed to evaluate the performance and durability of repurposed units in stationary applications. Installed at a technology development center, the system demonstrated the potential for using decommissioned automotive batteries to support the electricity grid. This development marked a significant step for the energy company in validating sustainable storage technologies for future integration with renewable energy sources.
In May 2024, Sandvik announced a strategic pilot project to deploy a second-life battery energy storage system at a mining asset operated by Glencore. This initiative was undertaken in collaboration with the company's technology partner, ECO STOR, which utilized its engineering expertise to construct the solution using battery modules repurposed from Sandvik’s electric underground loaders and trucks. The project aimed to demonstrate the technical viability of using retired mining vehicle batteries for stationary energy storage applications such as peak shaving and power shifting. This collaboration highlighted the growing industrial focus on implementing circular economy principles within the global mining sector.

Key Market Players

Bayerische Motoren Werke AG
Tesla, Inc
Nissan Motor Co., Ltd
Toyota Motor Corporation
Renault Group
Hyundai Motor Company
Volkswagen AG
LG Chem, Ltd.
Contemporary Amperex Technology Co. Limited.
Samsung SDI Co., Ltd

By Application	By End-User	By Region
Renewable Energy Storage Communication System Uninterruptible Power Supply (UPS)	Telecom/Datacom Industrial Controls Medical Equipment Defense & Aerospace Transportation Consumer Electronics Others	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

In this report, the Global Second-Life Battery Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

Second-Life Battery Market, By Application:

Renewable Energy Storage
Communication System
Uninterruptible Power Supply (UPS)

Second-Life Battery Market, By End-User:

Telecom/Datacom
Industrial Controls
Medical Equipment
Defense & Aerospace
Transportation
Consumer Electronics
Others

Second-Life Battery Market, By Region:

North America

United States
Canada
Mexico

Europe

France
United Kingdom
Italy
Germany
Spain

Asia Pacific

China
India
Japan
Australia
South Korea

South America

Brazil
Argentina
Colombia

Middle East & Africa

South Africa
Saudi Arabia
UAE

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the Global Second-Life Battery Market.

Available Customizations:

Global Second-Life Battery Market report with the given market data, TechSci Research offers customizations according to a company's specific needs. The following customization options are available for the report:

Company Information

Detailed analysis and profiling of additional market players (up to five).

Global Second-Life Battery Market is an upcoming report to be released soon. If you wish an early delivery of this report or want to confirm the date of release, please contact us at [email protected]

Table of content

1. Product Overview

1.1. Market Definition

1.2. Scope of the Market

1.2.1. Markets Covered

1.2.2. Years Considered for Study

1.2.3. Key Market Segmentations

2. Research Methodology

2.1. Objective of the Study

2.2. Baseline Methodology

2.3. Key Industry Partners

2.4. Major Association and Secondary Sources

2.5. Forecasting Methodology

2.6. Data Triangulation & Validation

2.7. Assumptions and Limitations

3. Executive Summary

3.1. Overview of the Market

3.2. Overview of Key Market Segmentations

3.3. Overview of Key Market Players

3.4. Overview of Key Regions/Countries

3.5. Overview of Market Drivers, Challenges, Trends

4. Voice of Customer

5. Global Second-Life Battery Market Outlook

5.1. Market Size & Forecast

5.1.1. By Value

5.2. Market Share & Forecast

5.2.1. By Application (Renewable Energy Storage, Communication System, Uninterruptible Power Supply (UPS))

5.2.2. By End-User (Telecom/Datacom, Industrial Controls, Medical Equipment, Defense & Aerospace, Transportation, Consumer Electronics, Others)

5.2.3. By Region

5.2.4. By Company (2025)

5.3. Market Map

6. North America Second-Life Battery Market Outlook

6.1. Market Size & Forecast

6.1.1. By Value

6.2. Market Share & Forecast

6.2.1. By Application

6.2.2. By End-User

6.2.3. By Country

6.3. North America: Country Analysis

6.3.1. United States Second-Life Battery Market Outlook

6.3.1.1. Market Size & Forecast

6.3.1.1.1. By Value

6.3.1.2. Market Share & Forecast

6.3.1.2.1. By Application

6.3.1.2.2. By End-User

6.3.2. Canada Second-Life Battery Market Outlook

6.3.2.1. Market Size & Forecast

6.3.2.1.1. By Value

6.3.2.2. Market Share & Forecast

6.3.2.2.1. By Application

6.3.2.2.2. By End-User

6.3.3. Mexico Second-Life Battery Market Outlook

6.3.3.1. Market Size & Forecast

6.3.3.1.1. By Value

6.3.3.2. Market Share & Forecast

6.3.3.2.1. By Application

6.3.3.2.2. By End-User

7. Europe Second-Life Battery Market Outlook

7.1. Market Size & Forecast

7.1.1. By Value

7.2. Market Share & Forecast

7.2.1. By Application

7.2.2. By End-User

7.2.3. By Country

7.3. Europe: Country Analysis

7.3.1. Germany Second-Life Battery Market Outlook

7.3.1.1. Market Size & Forecast

7.3.1.1.1. By Value

7.3.1.2. Market Share & Forecast

7.3.1.2.1. By Application

7.3.1.2.2. By End-User

7.3.2. France Second-Life Battery Market Outlook

7.3.2.1. Market Size & Forecast

7.3.2.1.1. By Value

7.3.2.2. Market Share & Forecast

7.3.2.2.1. By Application

7.3.2.2.2. By End-User

7.3.3. United Kingdom Second-Life Battery Market Outlook

7.3.3.1. Market Size & Forecast

7.3.3.1.1. By Value

7.3.3.2. Market Share & Forecast

7.3.3.2.1. By Application

7.3.3.2.2. By End-User

7.3.4. Italy Second-Life Battery Market Outlook

7.3.4.1. Market Size & Forecast

7.3.4.1.1. By Value

7.3.4.2. Market Share & Forecast

7.3.4.2.1. By Application

7.3.4.2.2. By End-User

7.3.5. Spain Second-Life Battery Market Outlook

7.3.5.1. Market Size & Forecast

7.3.5.1.1. By Value

7.3.5.2. Market Share & Forecast

7.3.5.2.1. By Application

7.3.5.2.2. By End-User

8. Asia Pacific Second-Life Battery Market Outlook

8.1. Market Size & Forecast

8.1.1. By Value

8.2. Market Share & Forecast

8.2.1. By Application

8.2.2. By End-User

8.2.3. By Country

8.3. Asia Pacific: Country Analysis

8.3.1. China Second-Life Battery Market Outlook

8.3.1.1. Market Size & Forecast

8.3.1.1.1. By Value

8.3.1.2. Market Share & Forecast

8.3.1.2.1. By Application

8.3.1.2.2. By End-User

8.3.2. India Second-Life Battery Market Outlook

8.3.2.1. Market Size & Forecast

8.3.2.1.1. By Value

8.3.2.2. Market Share & Forecast

8.3.2.2.1. By Application

8.3.2.2.2. By End-User

8.3.3. Japan Second-Life Battery Market Outlook

8.3.3.1. Market Size & Forecast

8.3.3.1.1. By Value

8.3.3.2. Market Share & Forecast

8.3.3.2.1. By Application

8.3.3.2.2. By End-User

8.3.4. South Korea Second-Life Battery Market Outlook

8.3.4.1. Market Size & Forecast

8.3.4.1.1. By Value

8.3.4.2. Market Share & Forecast

8.3.4.2.1. By Application

8.3.4.2.2. By End-User

8.3.5. Australia Second-Life Battery Market Outlook

8.3.5.1. Market Size & Forecast

8.3.5.1.1. By Value

8.3.5.2. Market Share & Forecast

8.3.5.2.1. By Application

8.3.5.2.2. By End-User

9. Middle East & Africa Second-Life Battery Market Outlook

9.1. Market Size & Forecast

9.1.1. By Value

9.2. Market Share & Forecast

9.2.1. By Application

9.2.2. By End-User

9.2.3. By Country

9.3. Middle East & Africa: Country Analysis

9.3.1. Saudi Arabia Second-Life Battery Market Outlook

9.3.1.1. Market Size & Forecast

9.3.1.1.1. By Value

9.3.1.2. Market Share & Forecast

9.3.1.2.1. By Application

9.3.1.2.2. By End-User

9.3.2. UAE Second-Life Battery Market Outlook

9.3.2.1. Market Size & Forecast

9.3.2.1.1. By Value

9.3.2.2. Market Share & Forecast

9.3.2.2.1. By Application

9.3.2.2.2. By End-User

9.3.3. South Africa Second-Life Battery Market Outlook

9.3.3.1. Market Size & Forecast

9.3.3.1.1. By Value

9.3.3.2. Market Share & Forecast

9.3.3.2.1. By Application

9.3.3.2.2. By End-User

10. South America Second-Life Battery Market Outlook

10.1. Market Size & Forecast

10.1.1. By Value

10.2. Market Share & Forecast

10.2.1. By Application

10.2.2. By End-User

10.2.3. By Country

10.3. South America: Country Analysis

10.3.1. Brazil Second-Life Battery Market Outlook

10.3.1.1. Market Size & Forecast

10.3.1.1.1. By Value

10.3.1.2. Market Share & Forecast

10.3.1.2.1. By Application

10.3.1.2.2. By End-User

10.3.2. Colombia Second-Life Battery Market Outlook

10.3.2.1. Market Size & Forecast

10.3.2.1.1. By Value

10.3.2.2. Market Share & Forecast

10.3.2.2.1. By Application

10.3.2.2.2. By End-User

10.3.3. Argentina Second-Life Battery Market Outlook

10.3.3.1. Market Size & Forecast

10.3.3.1.1. By Value

10.3.3.2. Market Share & Forecast

10.3.3.2.1. By Application

10.3.3.2.2. By End-User

11. Market Dynamics

11.1. Drivers

11.2. Challenges

12. Market Trends & Developments

12.1. Merger & Acquisition (If Any)

12.2. Product Launches (If Any)

12.3. Recent Developments

13. Global Second-Life Battery Market: SWOT Analysis

14. Porter's Five Forces Analysis

14.1. Competition in the Industry

14.2. Potential of New Entrants

14.3. Power of Suppliers

14.4. Power of Customers

14.5. Threat of Substitute Products

15. Competitive Landscape

15.1. Bayerische Motoren Werke AG

15.1.1. Business Overview

15.1.2. Products & Services

15.1.3. Recent Developments

15.1.4. Key Personnel

15.1.5. SWOT Analysis

15.2. Tesla, Inc

15.3. Nissan Motor Co., Ltd

15.4. Toyota Motor Corporation

15.5. Renault Group

15.6. Hyundai Motor Company

15.7. Volkswagen AG

15.8. LG Chem, Ltd.

15.9. Contemporary Amperex Technology Co. Limited.

15.10. Samsung SDI Co., Ltd

16. Strategic Recommendations

17. About Us & Disclaimer

Report Description

Table of content

Figures and Tables

Frequently asked questions

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