Second-Life Automotive Lithium-Ion Battery Market

Industry Overview

In 2023, the worldwide Second-Life Automotive Lithium-Ion Battery Market was estimated at USD 0.31 billion and is expected to progress during the forecast period (2025-2030) with a CAGR of 12.8 percent, and the market is anticipated to reach USD 0.78 Billion by 2030. 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 several 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.

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)

Based on type, the LFP segment dominated the second-life automotive lithium-ion battery market. In addition, it is also projected to remain the largest group throughout the forecast period. This is mainly because, compared to other types of batteries, LFP batteries are safer have a higher life span, and are favored by many EV manufacturers, especially in China.

Based on Vehicle Type

•    Two-Wheeler
•    Passenger Car
•    Commercial Vehicle

In 2019, the passenger car segment had the largest share, based on vehicle model, in the second-life automotive lithium-ion battery industry. It is also expected that the group will experience the highest growth during the forecast period and continue to hold the largest market share. This can be due to government funding for the development of new energy cars in major automotive-selling countries, such as China and the United States, and increasing demand for high-range per-charge fully electric passenger cars.

Based on Geographies

•    North America
•    Europe
•    Asia-Pacific (APAC)
•    Rest of World

Throughout the historical era, APAC was the world's largest second-life market for lithium-ion automotive batteries and is projected to remain the largest market in the forecast period as well. The demand for APAC is led by China. China is currently experiencing the world's largest adoption of EVs. In addition, the country also aims to achieve a 50 percent EV share domestically by 2030. This projects a prospective market in the country for second-life batteries.

Global Second-Life Automotive Lithium-Ion Battery Market Report Coverage

Report Metric	Details
Historical Period	2018 - 2023
Base Year Considered	2024
Forecast Period	2025 - 2030
Market Size in 2023	U.S.D.  USD 0.31 Billion Billion
Revenue Forecast in 2030	U.S.D.  USD 0.78 Billion Billion
Growth Rate	12.8%
Segments Covered in the Report	By Type and By Vehicle Type
Report Scope	Market Trends, Drivers, and Restraints; Revenue Estimation and Forecast; Segmentation Analysis; Impact of COVID-19; Companies’ Strategic Developments; Market Share Analysis of Key Players; Company Profiling
Regions Covered in the Report	North America, Europe, Asia-Pacific, Middle East, and Rest of the World

Trends

In 2019, based on application, the base station segment accounted for the largest share of the second-life automotive lithium-ion battery industry. This is because 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.

Market Drivers

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.

Opportunity

Companies should industrialize and scale remanufacturing processes to minimize costs and preserve the value gap between new and used lithium-ion batteries 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.

Challenges

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.

Competitive Insights

Samsung SDI Co., Ltd. is a battery and electronic materials manufacturer headquartered in Yongin, Gyeonggi-do, South Korea. Samsung SDI operates its business with Energy Solutions and Electronic Materials segment.

GS Yuasa Corporation is a Kyoto-based Japanese company specializing in the development and production of lead acid and lithium-ion batteries, used in automobiles, motorcycles and other areas including aerospace and defense applications.

Key Players

•    SAMSUNG SDI CO. LTD.
•    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.

Recent Development by Key Players

Honda and GS Yuasa collaborated for battery development. The joint venture will be based in Kyoto, Japan to develop high-performance batteries for electric cars

Nissan and Ecobat collbaorated to give used EV batteries a second life beyond the car. Through this partnership these two companies shall investigate how EV batteries, from Nissan LEAFs that are no longer on the road, can be located within the UK salvage network and then be safely recovered, repaired, recycled or repurposed to create a sustainable circular energy economy.

The Second-Life Automotive Lithium-Ion Battery Market report offers a comprehensive market segmentation analysis along with an estimation for the forecast period 2025–2030.

Segments Covered in the Report

• 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)
• Vehicle Type
  • Two-Wheeler
  • Passenger Car
  • Commercial Vehicle

Geographical Segmentation

• North America
  • U.S.
  • Canada
  • Mexico
• Europe
  • Germany
  • U.K.
  • France
  • Italy
  • Spain
  • Russia
  • Rest of Europe
• Asia-Pacific (APAC)
  • China
  • Japan
  • India
  • South Korea
  • Rest of Asia-Pacific
• Rest of the World (RoW)
  • Brazil
  • Saudi Arabia
  • South Africa
  • U.A.E.
  • Other Countries

 

Source: VynZ Research

Source: VynZ Research

1.    Research Overview

        1.1.    The Report Offers
        1.2.    Market Coverage
                1.2.1.    By Type
                1.2.2.    By Vehicle Type 
        1.3.    Research Phases
        1.4.    Limitations
        1.5.    Research Methodology
                1.5.1.    Data Sources
                        1.5.1.1.    Primary Research
                        1.5.1.2.    Secondary Research
                1.5.2.    Methodology
                        1.5.2.1.    Data Exploration
                        1.5.2.2.    Forecast Parameters
                        1.5.2.3.    Data Validation
                        1.5.2.4.    Assumptions
                1.5.3.    Study Period & Data Reporting Unit

2.    Executive Summary

3.    Industry Overview

        3.1.    Industry Dynamics
                3.1.1.    Market Growth Drivers
                3.1.2.    Market Restraints
                3.1.3.    Key Market Trends
                3.1.4.    Major Opportunities
        3.2.    Industry Ecosystem
                3.2.1.    Porter’s Five Forces Analysis
                3.2.2.    Recent Development Analysis
                3.2.3.    Value Chain Analysis
        3.3.    Competitive Insight
                3.3.1.    Competitive Position of Industry Players
                3.3.2.    Market Attractive Analysis

4.    Global Market Estimate and Forecast

        4.1.    Global Market Overview
        4.2.    Global Market Estimate and Forecast to 2030

5.    Market Segmentation Estimate and Forecast

        5.1.    By Type
                5.1.1.    Lithium–Iron Phosphate (LFP)
                        5.1.1.1.    Market Definition
                        5.1.1.2.    Market Estimation and Forecast to 2030
                5.1.2.    Lithium–Manganese Oxide (LMO)
                        5.1.2.1.    Market Definition
                        5.1.2.2.    Market Estimation and Forecast to 2030
                5.1.3.    Lithium–Nickel–Manganese–Cobalt Oxide (NMC)
                        5.1.3.1.    Market Definition
                        5.1.3.2.    Market Estimation and Forecast to 2030
                5.1.4.    Lithium–Titanate Oxide (LTO)
                        5.1.4.1.    Market Definition
                        5.1.4.2.    Market Estimation and Forecast to 2030
                5.1.5.    Lithium–Nickel–Cobalt–Aluminum Oxide (NCA)
                        5.1.5.1.    Market Definition
                        5.1.5.2.    Market Estimation and Forecast to 2030
        5.2.    By Vehicle Type 
                5.2.1.    Two-Wheeler
                        5.2.1.1.    Market Definition
                        5.2.1.2.    Market Estimation and Forecast to 2030
                5.2.2.    Passenger Car
                        5.2.2.1.    Market Definition
                        5.2.2.2.    Market Estimation and Forecast to 2030
                5.2.3.    Commercial Vehicle
                        5.2.3.1.    Market Definition
                        5.2.3.2.    Market Estimation and Forecast to 2030

6.    North America Market Estimate and Forecast

        6.1.    By Type 
        6.2.    By Vehicle Type 
        6.3.    By Country
                6.3.1.    U.S. Market Estimate and Forecast
                6.3.2.    Canada Market Estimate and Forecast
                6.3.3.    Mexico Market Estimate and Forecast

7.    Europe Market Estimate and Forecast

        7.1.    By Type 
        7.2.    By Vehicle Type 
        7.3.    By Country
                7.3.1.    Germany Market Estimate and Forecast
                7.3.2.    France Market Estimate and Forecast
                7.3.3.    U.K. Market Estimate and Forecast
                7.3.4.    Italy Market Estimate and Forecast
                7.3.5.    Spain Market Estimate and Forecast
                7.3.6.    Russia Market Estimate and Forecast
                7.3.7.    Rest of Europe Market Estimate and Forecast

8.    Asia-Pacific Market Estimate and Forecast

        8.1.    By Type
        8.2.    By Vehicle Type 
        8.3.    By Country 
                8.3.1.    China Market Estimate and Forecast
                8.3.2.    Japan Market Estimate and Forecast
                8.3.3.    India Market Estimate and Forecast
                8.3.4.    South Korea Market Estimate and Forecast
                8.3.5.    Rest of Asia-Pacific Market Estimate and Forecast

9.    Rest of the World (RoW) Market Estimate and Forecast

        9.1.    By Type
        9.2.    By Vehicle Type 
        9.3.    By Country
                9.3.1.    Brazil Market Estimate and Forecast
                9.3.2.    Saudi Arabia Market Estimate and Forecast
                9.3.3.    South Africa Market Estimate and Forecast
                9.3.4.    U.A.E. Market Estimate and Forecast
                9.3.5.    Other Countries Market Estimate and Forecast

10.    Company Profiles

        10.1.    SAMSUNG SDI CO. LTD.
                10.1.1.    Snapshot
                10.1.2.    Overview
                10.1.3.    Offerings
                10.1.4.    Financial Insight
                10.1.5.    Recent Developments
        10.2.    GS Yuasa Corporation
                10.2.1.    Snapshot
                10.2.2.    Overview
                10.2.3.    Offerings
                10.2.4.    Financial Insight
                10.2.5.    Recent Developments
        10.3.    BMW AG
                10.3.1.    Snapshot
                10.3.2.    Overview
                10.3.3.    Offerings
                10.3.4.    Financial Insight
                10.3.5.    Recent Developments
        10.4.    Nissan Motor Co. Ltd.
                10.4.1.    Snapshot
                10.4.2.    Overview
                10.4.3.    Offerings
                10.4.4.    Financial Insight
                10.4.5.    Recent Developments
        10.5.    LG Chem Ltd
                10.5.1.    Snapshot
                10.5.2.    Overview
                10.5.3.    Offerings
                10.5.4.    Financial Insight
                10.5.5.    Recent Developments
        10.6.    Toshiba Corp
                10.6.1.    Snapshot
                10.6.2.    Overview
                10.6.3.    Offerings
                10.6.4.    Financial Insight
                10.6.5.    Recent Developments
        10.7.     Hitachi Chemical Company Limited
                10.7.1.    Snapshot
                10.7.2.    Overview
                10.7.3.    Offerings
                10.7.4.    Financial Insight
                10.7.5.    Recent Developments
        10.8.    China Aviation Lithium Battery Company Limited
                10.8.1.    Snapshot
                10.8.2.    Overview
                10.8.3.    Offerings
                10.8.4.    Financial Insight
                10.8.5.    Recent Developments
        10.9.    Tesla Inc.
                10.9.1.    Snapshot
                10.9.2.    Overview
                10.9.3.    Offerings
                10.9.4.    Financial Insight
                10.9.5.    Recent Developments
        10.10.  Panasonic Corp.
                10.10.1.    Snapshot
                10.10.2.    Overview
                10.10.3.    Offerings
                10.10.4.    Financial Insight
                10.10.5.    Recent Developments

11.    Appendix

        11.1.    Exchange Rates
        11.2.    Abbreviations

List of Tables

Table 1 Sources
Table 2 Study Periods
Table 3 Data Reporting Unit
Table 4 Global Second Life Automotive Lithium-Ion Battery Market Size, By Type,2018-2023 (USD Billion)
Table 5 Global Second Life Automotive Lithium-Ion Battery Market Size, By Type, 2025–2030 (USD Billion)
Table 6 Global Second Life Automotive Lithium-Ion Battery Market Size, By Vehicle Type,2018-2023(USD Billion)
Table 7 Global Second Life Automotive Lithium-Ion Battery Market Size, By Vehicle Type,2025–2030 (USD Billion)
Table 8 Global Second Life Automotive Lithium-Ion Battery Market Size, by Region, 2018-2023(USD Billion)
Table 9 Global Second Life Automotive Lithium-Ion Battery Market Size, by Region, 2025–2030 (USD Billion)
Table 10 North America Second Life Automotive Lithium-Ion Battery, By Type, 2018-2023(USD Billion)
Table 11 North America Second Life Automotive Lithium-Ion Battery, By Type, 2025–2030 (USD Billion)
Table 12 North America Second Life Automotive Lithium-Ion Battery, By Vehicle Type Type, 2018-2023(USD Billion)
Table 13 North America Second Life Automotive Lithium-Ion Battery, By Vehicle Type  Type, 2025–2030 (USD Billion)
Table 14 North America Second Life Automotive Lithium-Ion Battery, by Region, 2018-2023(USD Billion)
Table 15 North America Second Life Automotive Lithium-Ion Battery, by Region, 2025–2030 (USD Billion)
Table 16 Europe Second Life Automotive Lithium-Ion Battery, By Type, 2018-2023(USD Billion)
Table 17 Europe Second Life Automotive Lithium-Ion Battery, By Type, 2025–2030 (USD Billion)
Table 18 Europe Second Life Automotive Lithium-Ion Battery, By Vehicle Type, 2018-2023(USD Billion)
Table 19 Europe Second Life Automotive Lithium-Ion Battery, By Vehicle Type, 2025–2030 (USD Billion)
Table 20 Europe Second Life Automotive Lithium-Ion Battery, by Region,2018-2023 (USD Billion)
Table 21 Europe Second Life Automotive Lithium-Ion Battery, by Region, 2025–2030 (USD Billion)
Table 22 Asia-Pacific Second Life Automotive Lithium-Ion Battery, By Type, 2018-2023(USD Billion)
Table 23 Asia-Pacific Second Life Automotive Lithium-Ion Battery, By Type, 2025–2030 (USD Billion)
Table 24 Asia-Pacific Second Life Automotive Lithium-Ion Battery, By Vehicle Type, 2018-2023(USD Billion)
Table 25 Asia-Pacific Second Life Automotive Lithium-Ion Battery, By Vehicle Type, 2025–2030 (USD Billion)
Table 26 Asia-Pacific Second Life Automotive Lithium-Ion Battery, by Region, 2018-2023(USD Billion)
Table 27 Asia-Pacific Second Life Automotive Lithium-Ion Battery, by Region, 2025–2030 (USD Billion)
Table 28 RoW Second Life Automotive Lithium-Ion Battery, By Type, 2018-2023(USD Billion)
Table 29 RoW Second Life Automotive Lithium-Ion Battery, By Type, 2025–2030 (USD Billion)
Table 30 RoW Second Life Automotive Lithium-Ion Battery, By Vehicle Type, 2018-2023(USD Billion)
Table 31 RoW Second Life Automotive Lithium-Ion Battery, By Vehicle Type, 2025–2030 (USD Billion)
Table 32 RoW Second Life Automotive Lithium-Ion Battery, by Region, 2018-2023(USD Billion)
Table 33 RoW Second Life Automotive Lithium-Ion Battery, by Region, 2025–2030 (USD Billion)
Table 34 Snapshot – SAMSUNG SDI CO. LTD.
Table 35 Snapshot – GS Yuasa Corporation
Table 36 Snapshot – BMW AG
Table 37 Snapshot – Nissan Motor Co. Ltd.
Table 38 Snapshot – LG Chem Ltd
Table 39 Snapshot – Toshiba Corp  
Table 40 Snapshot – Hitachi Chemical Company Limited
Table 41 Snapshot – China Aviation Lithium Battery Company Limited
Table 42 Snapshot – Tesla Inc. 
Table 43 Snapshot – Panasonic Corp.

List of Figures

Figure 1 Market Coverage
Figure 2 Research Phases
Figure 3 Secondary Sources for Different Parameters
Figure 4 Methodology
Figure 5 Data Mining & Exploration
Figure 6 Data Triangulation
Figure 7 Assumptions for Market Estimation and Forecast
Figure 8 Market Synopsis
Figure 9 Global Second Life Automotive Lithium-Ion Battery Market - Growth Drivers and Restraints
Figure 10 Competitive Benchmark
Figure 11 Global Second Life Automotive Lithium-Ion Battery Market Size Highlight
Figure 12 Global Second Life Automotive Lithium-Ion Battery Market Size, By Type, 2018 - 2030 (USD Billion)
Figure 13 Global Second Life Automotive Lithium-Ion Battery Market Size, By Vehicle Type, 2018 - 2030 (USD Billion)
Figure 14 Global Second Life Automotive Lithium-Ion Battery Market Size, by Region, 2018 - 2030 (USD Billion)
Figure 15 North America Second Life Automotive Lithium-Ion Battery Highlight
Figure 16 North America Second Life Automotive Lithium-Ion Battery, By Type, 2018 - 2030 (USD Billion)
Figure 17 North America Second Life Automotive Lithium-Ion Battery, By Vehicle Type  Type, 2018 - 2030 (USD Billion)
Figure 18 North America Second Life Automotive Lithium-Ion Battery, by Region, 2018 - 2030 (USD Billion)
Figure 19 Europe Second Life Automotive Lithium-Ion Battery Highlight
Figure 20 Europe Second Life Automotive Lithium-Ion Battery, By Type, 2018 - 2030 (USD Billion)
Figure 21 Europe Second Life Automotive Lithium-Ion Battery, By Vehicle Type, 2018 - 2030 (USD Billion)
Figure 22 Europe Second Life Automotive Lithium-Ion Battery, by Region, 2018 - 2030 (USD Billion)
Figure 23 Asia-Pacific Second Life Automotive Lithium-Ion Battery Highlight
Figure 24 Asia-Pacific Second Life Automotive Lithium-Ion Battery, By Type, 2018 - 2030 (USD Billion)
Figure 25 Asia-Pacific Second Life Automotive Lithium-Ion Battery, By Vehicle Type, 2018 - 2030 (USD Billion)
Figure 26 Asia-Pacific Second Life Automotive Lithium-Ion Battery, by Region, 2018 - 2030 (USD Billion)
Figure 27 RoW Second Life Automotive Lithium-Ion Battery Highlight
Figure 28 RoW Second Life Automotive Lithium-Ion Battery, By Type, 2018 - 2030 (USD Billion)
Figure 29 RoW Second Life Automotive Lithium-Ion Battery, By Vehicle Type, 2018 - 2030 (USD Billion)
Figure 30 RoW Second Life Automotive Lithium-Ion Battery, by Region, 2018 - 2030 (USD Billion)