Demand for Second-Life Automotive Lithium-Ion Batteries Set to Explode in Europe in Future

The highly expensive recycling process of lithium-ion batteries is a major factor fueling the demand for second-life automotive lithium-ion batteries. Lithium-ion batteries have only 2–7% of lithium and obtaining the metal via recycling is usually five times costlier than obtaining it naturally. Cobalt is the only material which is worth recycling. However, the battery technology developing organizations are increasingly producing batteries that eliminate or reduce the usage of this material by substituting it with a cheaper substance.

Apart from the aforementioned factor, the increasing deployment of electric vehicles (EVs) is also propelling the sales of EV batteries. This is subsequently boosting the demand for second-life automotive lithium-ion batteries. The worldwide sales of electric vehicles are growing rapidly, mainly because of the rising concerns being raised over the environmental degradation caused due to the usage of fossil fuel-powered vehicles. According to many reports, nearly 43% of the total greenhouse gas emissions are released by the automobile sector.

Due to the aforementioned factors, the sales of second-life automotive lithium-ion batteries are rising all over the world. This is, in turn, driving the advancement of the global second-life automotive lithium-ion battery market. As a result, the valuation of the market is predicted to rise from $430.0 million in 2019 to $7,392.0 million by 2030. Furthermore, the market would progress at a CAGR of 23.1% between 2020 and 2030, as per the estimates of the market research company, P&S Intelligence.

Market Segmentation by Type

• Lithium–Iron Phosphate (LFP)
• Lithium–Manganese Oxide (LMO)
• Lithium–Nickel–Manganese–Cobalt Oxide (NMC)
• Lithium–Titanate Oxide (LTO)
• Lithium–Nickel–Cobalt–Aluminum Oxide (NCA)

Market Segmentation by Vehicle Type

• Two-Wheeler
• Passenger Car
• Commercial Vehicle

Market Segmentation by Application

• Energy Storage
• Electric Vehicle (EV) Charging
• Base Station
• Low-Speed EV