EV Battery Reuse Market Size, Share, Analysis, Trends, Growth Report, 2030

EV Battery Reuse Industry Prospective:

The global EV battery reuse market size was evaluated at $11 billion in 2022 and is slated to hit $51 billion by the end of 2030 with a CAGR of nearly 32% between 2023 and 2030.

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EV Battery Reuse Market: Overview

An electric vehicle battery is used in electric motors for power. These are smarter and lighter batteries with high power, high-ratio energy density, and specific energy batteries. They reduce the weight of the vehicles and hence improve their performance. The commonly used batteries are lithium-ion and lithium-polymer. These batteries are recycled through direct recovery, smelting, and various other methods. With the advancements in technologies, the reusing of batteries becomes another way of enhancing productivity.  

Key Insights

• As per the analysis shared by our research analyst, the global EV battery reuse market is projected to expand annually at the annual growth rate of around 32% over the forecast timespan (2023-2030)
• In terms of revenue, the global EV battery reuse market size was evaluated at nearly $11 billion in 2022 and is expected to reach $51 billion by 2030.
• The global EV battery reuse market is anticipated to grow rapidly over forecast timeline owing to growing preference for electric vehicles over conventional ones.
• In terms of end-use, the automotive segment is slated to register the fastest CAGR over the forecast timeframe.
• Based on battery chemistry, the lead-acid segment is predicted to lead the segmental growth in the next eight years.
• Based on application, the base stations segment is expected to dominate the segmental expansion in the forecast period.
• Region-wise, the European EV battery reuse industry is projected to register the fastest CAGR during the assessment timeline.

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EV Battery Reuse Market: Growth Factors

The huge popularity of power-efficient products is predicted to increase the scope of product demand over the forecast period

A humungous surge in the sale of electric cars owing to a growing trend of clean energy transition will steer the expansion of the global EV battery reuse market in the upcoming years. Escalating rising demand for energy-efficient tools will promote the global market trends. Growing preference for electric vehicles over conventional ones will proliferate the size of the global market in the years ahead. Escalating concerns over energy security and cost-savings potentially are likely to propel the global market expansion. There is an increase in the adoption of low-energy applications and energy-efficient storage systems due to the growing electricity usage concerns, thereby embellishing the global market trends.

Furthermore, there is a large-scale use of reusable batteries in electric vehicles, thereby driving the expansion of the market across the globe. The burgeoning interest in the second lithium-ion life of the batteries in the automotive sectors is likely to determine the global market surge. Supportive government policies and favorable schemes are projected to boost the size of the global market. Moreover, firms are entering into strategic partnerships for producing recyclable electric vehicle batteries with a given warranty period. For instance, in May 2023, Lohum, a key manufacturer of renewable energy transition materials, and ACKO, a technology-first insuring firm, entered into a partnership for recycling as well as reusing batteries for electric vehicle use.  

EV Battery Reuse Market: Restraints

Huge costs of raw components can impede the global industry surge over 2023-2030

High raw material costs can prove to be a hindrance to the growth of the global EV battery reuse industry in the upcoming years. Fluctuations in the supply of products owing to a rise in the export duties from the EU have further curtailed the growth of the industry across the globe.

EV Battery Reuse Market: Opportunities

Growing concerns about rising environmental pollution will create new facades of growth for the global market

Surging environmental degradation due to fuel emissions from vehicles has made consumers prefer electric vehicles and this has generated huge sales of the latter, thereby creating new opportunities for growth for the global EV battery reuse market. In addition to this, the massive need for repurposing batteries for second-life applications and recycling them for deriving high-valued elements such as cobalt and nickel will prompt the demand for EV battery reuse.  

EV Battery Reuse Market: Challenges

Reduced demand for electric vehicles in developing countries of APAC and Latin America can shrink the growth of the global industry  

Swift breakthroughs in lithium-ion systems and reductions in battery prices can pose a huge challenge to the growth of the global EV battery reuse industry. Low sales of electric cars in the emerging economies due to lower demand & higher costs along with less awareness about EV battery reuse among the customers in these economies can pose a big challenge for the global industry in the foreseeable future. Less availability of electric charging stations in developing countries resulting in low purchase of electric vehicles can further curtail the growth of the industry.  

EV Battery Reuse Market: Segmentation

The global EV battery reuse market is sectored into battery chemistry, end-use, application, and region.                                     

In battery chemistry terms, the EV battery reuse market across the globe is segregated into lead-acid, lithium-based, nickel-based, and others segments. Furthermore, the lead-acid segment, which led the battery chemistry space in 2022, is predicted to continue leading the segment even during the forecast timeframe. The expansion of the segment during 2023-2030 can be due to a surge in the adoption of lead-acid batteries in electric vehicles. Apart from this, the growing demand for cost-efficient and energy-conserving technologies will promote the segmental surge.  

Based on the end-use, the global EV battery reuse industry is sectored into automotive, consumer electronics, and industrial batteries segments. Additionally, the automotive segment, which acquired a key share of the global industry in 2022, is anticipated to record the fastest CAGR over the next eight years. The segmental expansion over the forecast timeframe can be owing to the thriving automotive sector and favorable government laws pertaining to the use of electric as well as hybrid vehicles.  

Based on the application, the global EV battery reuse market is sectored into the energy storage, base stations, EV charging, and low-speed vehicles segments. Additionally, the base stations segment, which acquired a key share of the global market in 2022, is predicted to lead the segmental surge over the forecasting years. The segmental surge over the forecast timeframe can be owing to a rise in the manufacture of vehicles emitting lesser fuels. With car fleet electrification becoming a big challenge due to oscillations in the demand & supply of key minerals, it is likely to increase the demand for electric vehicle batteries as a source of power for base stations.  

EV Battery Reuse Market: Report Scope

EV Battery Reuse Market: Regional Insights

Asia-Pacific is predicted to retain its leading position in the global EV battery reuse market over the forecast timespan

Asia-Pacific, which contributed about two-fifths of the global EV battery reuse market earnings in 2022, will be a leading region over the forecast timespan. Moreover, the regional market expansion over the coming eight years is subject to a rise in the demand for reuse batteries in electric vehicles in countries such as China, Japan, South Korea, Taiwan, and Singapore. The large-scale presence of EV battery reuse units in these countries will further proliferate the regional market size in the years ahead. Apart from this, a prominent surge in the allocation of funds for constructing a strong electric charging infrastructure in countries such as China and India will drive the regional market trends. The availability of electric vehicles at reduced costs in countries such as China will increase the market revenue in the region. For the record, in 2019, Tesla, a U.S.-based car manufacturer, established an electric vehicle manufacturing unit in Shanghai, China, thereby aiming to increase its presence in Asia. The move enhanced electric vehicle purchases, increased demand for electric charging stations, and boosted the use of EV batteries in the country.  

The European EV battery reuse industry is set to record the fastest CAGR in the coming eight years. The regional industry expansion over 2023-2030 can be attributed to growing fuel costs and strict emission norms imposed by the EU on European nations. For instance, the EU directive and EU commission set a target of a 100% reduction in the carbon emissions from vehicles. Such moves will compel automotive manufacturers to produce electric vehicles, thereby translating into a huge demand for electric batteries as well as recyclable EV batteries. Favorable laws related to battery recycling will bolster the product demand in the continent.  

EV Battery Reuse Market: Competitive Space

The global EV battery reuse market profiles key players such as:

• BAIC Motor Corporation Limited
• Mitsubishi Electric
• Johnson Controls
• Energus Power Solutions Ltd.
• Toyota Motor Corporation
• Global Battery Solutions
• Toshiba Corporation
• Samsung SDI Co. LG Chem Ltd.
• Lithium Werks
• Relectrify Pty Ltd.
• SAIC Motor Corporation Limited
• American Manganese Inc.
• Retriev technologies
• GS Yuasa Corporation.

The global EV battery reuse market is segmented as follows:

By Battery Chemistry

• Lead-Acid
• Lithium-Based
• Nickel-Based
• Others

By End-Use

• Automotive
• Consumer Electronics
• Industrial Batteries

By Application

• Energy Storage
• Base Stations
• EV Charging
• Low Speed Vehicles

By Region

• North America
  • The U.S.
  • Canada
• Europe
  • France 
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Southeast Asia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of Middle East & Africa