Global Second-Life Battery Market Size Likely to Grow at a CAGR of 11.8% By 2035

Market Size and Growth

The market size of global second-life batteries will be estimated at USD 15.4 billion in 2025 and is expected to grow to between USD 17.2 billion in 2026 and about USD 46.9 billion by 2035, with a current CAGR (compound annual growth rate) of 11.8% during the period of 2026 to 2035.

Second-Life Battery Market Revenue and Trends

“Second-life battery” refers to a second usage of a used energy storage system (mainly from electric vehicles) when it can no longer meet the high-performance standards of transportation yet has enough remaining capacity to be repurposed for less demanding energy applications. Where previously a battery might have been seen as a one-time-use product to be recycled, research and development in this area considers substituting waste, refurbishing, repairing, and remanufacturing batteries into new energy management systems (Battery Energy Storage Systems) for use around homes and businesses, in addition to electricity demand balancing.

What are the Factors That Have a Significant Contribution to the Growth of the Second-Life Battery Market?

The sustainability, circular economy, and zero-waste-based incentives are vital underlyings to proliferate second-life battery markets, considering that both policymakers and industries pursue reducing the impacts on the environment. Recycling and scrapping batteries is the typical practice, which is problematic due to energy consumption regarding the recuperation of materials and transport and storage operations and is invasive as it introduces waste by-products; second-life applications delay the recycling process for a number of years and ensure the sustainability of the product for a longer time.

If aged batteries have the capacity of 50–80%, then demand for raw materials (lithium, cobalt, and nickel) can be reduced, leading to decreased production plants and related emissions. The EU is protecting this trend through legislation, targets, and funding, encouraging automotive manufacturers to switch to lifecycle management schemes, which follow reuse before recycling. Furthermore, many companies recently have been investing in second-life batteries to comply with ESG (Environmental, social and corporate governance) or decarbonization commitments.

Also, the recent increasing trends of renewable energy and decentralization of power are major driving forces behind the development of the second-life battery market, as both these forces can benefit from such adaptable and cheaper energy storage solutions. Use of renewable sources—the natural availability of renewable sources like sunlight or wind is irregular and can only be matched with market demand when the sun shines or airs. The intermittence of a time series like this requires a system to bridge the gaps and provide reliable power.

Second-life batteries, with 50–80% of their original charge, are more economical than new batteries and enable a cheap means of storing surplus renewable energy for use during times when the renewable generation is low. Simultaneously, moving away from the traditional power grid towards decentralized generation means that energy can be monitored and controlled locally through small-scale solar, wind, or combined-heat-and-power units and maintained by local applications. Such localized storage can again be provided by second-life batteries due to their economic and scaled properties.

Regional Insights

North America contributed the most market share in 2025. Positive government policies and incentives (such as clean energy-related incentives, funding opportunities through the Inflation Reduction Act, etc.) are driving the adoption of energy storage systems and the practice of the circular economy. The country‘s technological infrastructure as well as several market leaders will promote the development of this industry with several giant pilot projects and large-scale installations of repurposed batteries in utility-scale grid storage, EV charging stations, backup power, and others. In addition, growing demand for electricity, escalating energy costs, the imperative of grid resilience, and being one of the most affected regions by extreme weather events are further developing the market of second-life batteries.

Besides, the Asia Pacific is expected to grow at the highest CAGR during the projected period. The high production of EVs and growing trends of green technology drive the industry’s growth.

Report Scope

Recent Developments

• In January 2024, Moment Energy, one of North America’s leading EV battery repurposing companies, announced the close of its US$15 million Series A funding round. The round was co-led by the Amazon Climate Pledge Fund and Voyager Ventures.

List of the prominent players in the Second-Life Battery Market:

• Connected Energy
• Second Life EV Batteries Ltd
• Fortum
• Batteries AMPS GmbH
• Aceleron Energy
• Redwood Materials
• Corvus Energy
• energy
• Refurb Battery
• CeLLife Technologies
• Little Energy
• Higher Wire
• reLi Energy
• Vaulta
• IOTA
• battery systems
• Element Energy
• Modual
• Others