- The EV battery reuse market from battery electric vehicle is anticipated to see significant growth due to growing replacement of batteries
- As per International Energy Agency (IEA), a total of 7.2 Million electric vehicles were sold globally in 2019
The EV battery reuse market will exceed $1.5 billion by 2026 as per a report by Global Market Insights Inc. It valuation was at $250 million in 2019 and will register a CAGR of 32 per cent from 2020 to 2026.
The report says that second life EV battery deployment is anticipated to rise across base station application due to growing investment in communication towers globally. The base stations require an energy storage system to provide continuous power supply for smooth operations, which can be provided by the reuse of EV batteries.
As per the report, the EV battery reuse market from battery electric vehicle is anticipated to see significant growth due to growing replacement of batteries. Factors like altering discharge rates, harsh operational temperatures and numerous partial cycles per year are some of the key factors which affect the battery performance in the EVs.
Fluctuating pricing of fossil fuels
The report adds,”As a result, batteries which fail to meet the performance standards are increasingly being made available for reuse. In addition, stringent regulations to reduce mass battery disposal coupled with growing battery demand across stationary storage applications will positively impact the business growth over the forecast period.”
The report further states that growing deployment of electric vehicles across the globe will significantly increase the number of available EV batteries for reuse. Fluctuating pricing of fossil fuels will generate a shift towards adoption of electric vehicles, which will benefit the market growth over the forecast time-period. The increasing investments toward fast EV charging infrastructure will complement the adoption of used batteries across EV charging stations.
It said, “Rising purchasing power along with shifting trends toward electric mobility will propel the Asia Pacific EV battery reuse market. China, Japan, South Korea and India are anticipated to emerge as key markets for repurposed EV batteries on account of growing penetration of EVs. “
As per International Energy Agency (IEA), a total of 7.2 Million electric vehicles were sold globally in 2019. China accounted for over 45 per cent of the total sales. It said that rising energy demand across the developing nations will fuel a requirement for energy storage systems and EV charging stations.