Significance Of Second-life Batteries In The EV Industry. How It Will Be A Game Changer?

Pritesh Mahajan Apr 10, 2023

Electric Vehicle penetration has been consistently rising as the world is looking forward to a more clean and green transportation option. However, this does not come without considering the waste and recycling issues that come along with this electric transformation.

The batteries that power electric vehicles are a crucial part of this revolution and especially because they have a limited lifespan, and their disposal can pose severe environmental challenges. This is why, second-life batteries are a potential solution to this problem and if implemented early and effectively, they could help accelerate the adoption of clean energy and contribute to a more sustainable future.

What are Second-Life Batteries?

Second-life batteries are used batteries from electric vehicles that have reached the end of their useful life in the vehicle but can still retain a significant amount of their original capacity. These batteries can be used for other purposes, such as energy storage, after being retired from the vehicle. Typically, the battery capacity of second-life batteries is around 70-80 per cent of their original capacity, which is still quite significant and useful for other applications.

Why Second-Life Batteries are Significant in the EV Industry

According to an article by McKinsey, as of 2020, the total number of retired EV batteries in China, Europe, and the United States is estimated to be around 13.8 GWh. This number is expected to reach 130 GWh by 2030. Subsequently, the global demand for second-life batteries is projected to reach around 108 gigawatt-hours (GWh) by 2035, representing a potential market value of $4.2 billion. This growth is directly proportional to the massive sustainability it gives to the battery-powered electric industry.

Cost-Effective Solution

One of the primary advantages of using second-life batteries is their cost-effectiveness. Recycling and reusing these batteries reduce the overall cost of battery production, making EVs more affordable and accessible to a larger population. It also reduces the environmental impact of battery disposal.

Sustainable Energy Storage

Second-life batteries are an excellent solution for energy storage, especially in renewable energy systems such as solar or wind. They can store energy generated during peak production and release it during peak demand, reducing the need for fossil fuel-based energy sources.

Smaller Carbon Footprint

Reusing second-life batteries also have a smaller carbon footprint compared to manufacturing new batteries. Battery production is a resource-intensive process that requires a significant amount of energy and raw materials. By reusing second-life batteries, we can reduce the environmental impact of battery production and disposal.

Improved Grid Stability

Second-life batteries can also improve grid stability by providing a buffer for intermittent renewable energy sources. They can help balance the demand and supply of energy, reducing the need for additional investments in infrastructure.

Although the batteries offer a cost-effective and sustainable solution to battery production and disposal, along with improving grid stability and supporting renewable energy systems, there are still several challenges that need to be addressed.

Challenges of Second-Life Batteries

Standardisation

The standardization of second-life batteries is a significant challenge. Each battery type has different specifications, and it can be challenging to find compatible second-life batteries for specific applications.

Battery Safety

Safety concerns also exist with second-life batteries. As batteries age, they become more prone to thermal runaway, which can cause fires or explosions. Therefore, proper testing and certification of second-life batteries are essential.

Limited Market

The market for second-life batteries is currently limited because not all retired EV batteries are suitable for second-life applications. Batteries that have lost too much capacity or have been damaged may not be suitable for reuse. Additionally, the availability of second-life batteries is limited by the rate at which EVs are retired and replaced.

While there are several potential applications for second-life batteries, such as stationary storage or electric vehicle charging infrastructure, the market for these applications is still developing. Additionally, the performance and lifespan of second-life batteries may not be as predictable as new batteries, which can make it difficult to integrate them into existing systems.

If these challenges can be overcome, second-life batteries have the potential to revolutionize the EV industry and support a more sustainable and eco-friendly future and become a potential game-changer in the EV industry.