Global Second-Life Automotive Lithium-Ion Battery Market is Expected to Progress with a CAGR of 24.6% during Forecast Period

Second-Life Automotive Lithium-Ion Battery Market

In 2019, the worldwide second-life automotive lithium-ion battery market was estimated at $480.0 million and is expected to progress during the forecast period (2020-2025) with a CAGR of 24.6 percent. The costly process of battery recycling and the increasing worldwide adoption of electric vehicles (EVs) are the main factors driving the growth of the second-life lithium-ion automotive battery industry.

Furthermore, policymakers in a number of countries are gradually enacting policies and legislation aimed at encouraging the use of electric vehicles. This is also helping to fuel sales of used car lithium-ion batteries all over the world.

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In 2019, on the basis of application, the base station segment accounted for the largest share in the second-life automotive lithium-ion battery industry. This is due to the fact that battery systems, as an aggregate and highly dispersed reserve asset for frequency containment disruptions, are increasingly used in telecommunications base stations.

In May 2018, the Strategic Action Plan for batteries in Europe was adopted. Under this initiative, it is proposed to improve the development of a battery value chain in the area, including the adoption of the extraction of raw materials, the procurement and processing of battery materials, the manufacture of cells and battery systems, as well as reuse and recycling.

The growing worldwide adoption of EVs is a major factor contributing to the high demand for EV batteries, which, in turn, is driving the growth of the market for second-life lithium-ion automotive batteries. EV sales around the world are motivated by growing concerns about environmental safety, largely due to the rising rate of ozone depletion. The automotive industry currently contributes about 43% of the total greenhouse gases released into the atmosphere.

Thus, the growing environmental concerns about the degradation of air quality caused by the increasing quantity of vehicle exhaust fumes are paving the way globally for various government initiatives to protect the environment.

Companies should industrialise and scale remanufacturing processes to minimise costs and preserve the value gap between new and used lithium-ion batteries in order to stay competitive in the face of declining costs for new lithium-ion batteries. Automakers should build their EVs with second-life applications in mind to deal with the growing number of EV models and batteries. Nissan, for example, announced a collaboration with Sumitomo Corporation to reuse Nissan Leaf battery packs for stationary distributed and utility-scale storage systems.

There are no assurances about the quality or efficiency of second-life batteries, and there are few industry guidelines that concentrate on battery management systems or state-of-health disclosures, let alone standard performance requirements for a battery that would be used for a particular application.

Some of the Major Market Key Players in the Global Second-Life Automotive Lithium-Ion Battery Industry are:

•    GS Yuasa Corporation
•    BMW AG
•    Nissan Motor Co. Ltd.
•    LG Chem Ltd.
•    Toshiba Corp.
•    Hitachi Chemical Company Limited
•    China Aviation Lithium Battery Company Limited
•    Tesla Inc.
•    Panasonic Corp.