- The increasing demand for used batteries for energy storage purposes is helping the second-life automotive lithium-ion battery market grow
- The largest contribution to the second-life automotive lithium-ion battery market is made by Asia-Pacific (APAC)
The global second-life automotive lithium-ion battery market will reach $7,392.0 million by 2030 from $430.0 million in 2019 according to P&S Intelligence. It will grow at a CAGR of 23.1 per cent by 2030.
The awareness about using depleted automotive lithium-ion batteries is rising, so that not only can the operational costs, on having those recycled saved, but the mining of scarce materials can also be limited. The increasing demand for used batteries for energy storage purposes is helping the second-life automotive lithium-ion battery market grow. Depleted vehicle batteries may retain up to 80 per cent of their efficiency, which is why they are being used for storing energy in the industrial, renewable energy, and telecom sectors.
APAC leads
The report added, “The coronavirus pandemic is harming the second-life automotive lithium-ion battery market, as the restrictions on manufacturing and trade activities have led to the low supply of these products. Moreover, as automotive sales have reduced, there are fewer depleted batteries to spare, which is hindering their adoption for secondary purposes. Though the industry is witnessing recession presently, it is expected to recover in the coming time.”
The largest contribution to the second-life automotive lithium-ion battery market is made by Asia-Pacific (APAC). China registers the most EV sales, owing to the strong government support, which creates a large stock of partially depleted vehicle batteries. It aims to convert at least 50 per cent of its total automobile fleet to EVs by 2025.
Europe is projected to witness the fastest advance in the second-life automotive lithium-ion battery market in the years to come. It is also seeing the execution of a strategic action plan for a sustainable battery value chain. Under this, raw material extraction, battery materialsourcing and processing, and cell and battery system production, reuse, and recycling are being focused upon.
