The first lithium ion (Li-ion) battery-powered plug-in electric vehicles (PEVs) were launched in 2010 with the emergence of the Chevrolet Volt and Nissan LEAF, soon to be followed by dozens of other car launches. More than 100,000 PEVs have been sold thus far, and sales volumes are rising fast. The battery packs in these vehicles are usually warrantied for 8 to 10 years and, after that period, most will have reduced energy storage capacity. Battery manufacturers expect that those batteries will retain 80% of the original capacity, on average.
At that point, most of the degraded batteries will be taken out of the cars. What will happen to all those used but still capable batteries? The answer lies in reusing them for stationary applications. Reusing salvaged batteries for stationary applications solves a significant problem: new batteries cost too much to allow for their profitable use on the grid. Used but still capable batteries, however, can be sold at a low price and still provide a useful function. Navigant Research forecasts that the global second-life battery business will grow from $16 million in 2014 to $3 billion in 2035.
This Navigant Research report explores the concept of utilizing batteries for second-life applications, such as stationary storage. The study examines the issues related to second-life batteries and suggests moves for stakeholders to help make the concept become a reality. Global forecasts for the availability, capacity, and revenue of these batteries, as well as their future price ceilings, extend through 2035. The report also assesses the market motivators and obstacles for the secondary use of automotive batteries.
Key Questions Addressed:
- How many batteries will be available for second-life purposes over the next 2 decades?
- What is the expected monetary value of a used vehicle traction battery?
- What stationary storage applications will most likely benefit from the influx of second-life batteries?
- What will the residual value of the battery be worth when the car is salvaged?
- How will future new battery prices affect used battery prices?
Who needs this report?
- Energy storage project developers
- Electric utilities
- Automotive OEMs
- Battery manufacturers
- Government agencies and policymakers
- Investor community
Table of Contents
1. Executive Summary
2. Market Update
2.1 Market Motivators for Secondary Use of Automotive Batteries
2.1.2 Lowest Cost Option
2.2 Obstacles to Secondary Use of Automotive Batteries
2.2.1 Low Pricing for New Batteries
2.2.2 Institutional Cultural Resistance to Used Products
2.2.3 Excessive Degradation
2.2.4 Physical Refurbishment Obstacles
2.3 Market Forecasts for Second-Life Batteries
2.3.1 Battery Supply Forecast
2.3.2 Revenue Forecast for Second-Life Batteries
3. Conclusions and Recommendations
3.1 Policymaker Recommendations
3.2 Automotive Manufacturer Recommendations
3.3 Second-Life Battery Owner Recommendations
List of Charts
- Capacity and Revenue of Second-Life Batteries, World Markets: 2014-2035
- Energy Storage Technology Prices by Technology Type, World Markets: 2014
- Expected Lithium Ion Cell Prices by Sub-Chemistry, World Markets: 2014, 2017, and 2020
- Second-Life Battery Supply Nameplate Capacity by Region, World Markets: 2014-2035
- Second-Life Battery Supply Revenue by Region, World Markets: 2014-2035