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Second-Life Automotive Lithium-Ion Battery Market Research Report: By Type (Lithium–Iron Phosphate, Lithium–Manganese Oxide, Lithium–Nickel–Manganese–Cobalt Oxide, Lithium–Titanate Oxide, Lithium–Nickel–Cobalt–Aluminum Oxide), Vehicle Type (Two-Wheeler, Passenger Car, Commercial Vehicle), Application (Energy Storage, Electric Vehicle Charging, Base Station, Low-Speed EV) – Global Industry Analysis and Growth Forecast to 2030

  • Published: October 2020
  • Report Code: AT12090
  • Available Format: PDF
  • Pages: 128

Second-Life Automotive Lithium-Ion Battery Market Overview

The global second-life automotive lithium-ion battery market was valued at $430.0 million in 2019, and it is projected to advance with a CAGR of 23.1% during the forecast period (2020–2030). The expensive battery recycling process and the growing adoption of electric vehicles (EVs) across the world are the key factors driving the growth of the second-life automotive lithium-ion battery industry.

Moreover, due to the ongoing pandemic, governments of all COVID-19-affected countries have been taken measures to restrict unnecessary movement as well as promoted social distancing, in order to restraint the spread of the disease. Moreover, considering the present situation, the second-life automotive lithium-ion battery market has been adversely impacted for a temporary period, but it is expected to bounce back in near future.

Second-Life Automotive Lithium-Ion Battery Market

Lithium Ferro Phosphate (LFP) to Remain Largest Category in Forecast Period

The LFP category dominated the second-life automotive lithium-ion battery market during the historical period, based on type. It is further expected to remain the largest category during the forecast period as well. This is primarily attributed to the fact that the LFP batteries are safer when compared with other types of batteries and have higher life span, and are preferred by many EV manufacturers, especially in China.

Passenger Car Category to Advance with Highest Rate during Forecast Period

The passenger car category held the largest share in the second-life automotive lithium-ion battery market in 2019, based on vehicle type. The category is also projected to witness the fastest growth during the forecast period, to continue holding the largest share in the market. This can be attributed to the support from governments in major automobile-selling countries, such as China and the U.S. for producing new energy cars, and rising demand for fully electric passenger cars with high-range per charge feature.

Application of Second-Life Automotive Lithium-Ion Battery Was Highest in Base Station in 2019

In 2019, the base station category accounted for the largest share in the second-life automotive lithium-ion battery market, on the basis of application. This is due to the fact that battery systems are increasingly used in telecommunications base stations, as an aggregated and highly distributed asset for frequency containment disturbances reserve.

Asia-Pacific (APAC) to Remain Largest Regional Market in Forecast Period

APAC was the largest second-life automotive lithium-ion battery market in the world throughout the historical period and it is expected to remain the largest market in the forecast period as well. The APAC market is led by China. At present, China witnesses the highest adoption of EVs in the world. Furthermore, the country also targets to achieve domestically 50% EV share by 2025. This projects a prospective market for second-life batteries in the country.

European Market to Exhibit Fastest Growth during Forecast Period

The European second-life automotive lithium-ion battery market is expected to witness the fastest growth in the forecast period, owing to the increasing sales of EVs. Furthermore, the strategic action plan for batteries in Europe was adopted in May 2018. Under this plan, enhancement in building a battery value chain in the region, including embracing of raw material extraction, sourcing and processing of battery materials, producing of cells and battery systems, as well as reusing and recycling, is proposed to be done. Additionally, as automakers are boosting the production of EVs in Europe, Contemporary Amperex Technology Ltd. (CATL), one of the largest battery cell suppliers, announced to increase its investment to $2.0 billion (EUR 1.8 billion) in its battery plant in Germany in June 2019. Thus, the growth of the overall EV market in Europe is expected to drive the demand for second-life automotive lithium-ion batteries.

Second-Life Automotive Lithium-Ion Battery Market

Increasing Number of Partnerships and Collaborations – a Key Market Trend

Increasing number of partnerships and collaborations is a major trend in the second-life automotive lithium-ion battery market. Major OEMs and energy storage technology providers across the world have taken several business initiatives, including pilot projects, to explore the applications of used EV batteries. A large number of initiatives have been taken by these companies to support energy storage in residential, industrial, and commercial premises, and support EV charging at both home and public charging stations. For instance, in April 2020, Nissan Motor Co. entered into license agreement with APB Cooperation for low-cost lithium-ion battery production. This would help customers to use low-cost and renewable energy more efficiently. Similarly, in February 2020, BMW AG, Anheuser-Busch InBev, Bosch, Microsoft, and ZF teamed up to help manufacturing companies accelerate innovation at scale through cross-industry collaboration, knowledge and data sharing, as well as access to new technologies.

Second-Life Automotive Lithium-Ion Battery Market

Expensive Battery Recycling Process

Lithium-ion batteries contain only 2–7% of lithium and obtaining it through recycling is five times more expensive than obtaining lithium directly from natural sources. The only material worth recycling in the process is cobalt. However, battery technology companies are increasingly focusing on the development of batteries that reduce or omit the use of this material by substituting it with a more stable and cheaper substance, thereby creating a possibility of future batteries not having any cobalt to recycle. Thus, the expensive battery recycling process act as a main driver for the second-life automotive lithium-ion battery market.

Growing Adoption of EVs

The increasing adoption of EVs across the world is a major factor contributing toward the high demand for EV batteries, which, in turn, is driving the growth of the second-life automotive lithium-ion battery market. Increasing concerns over environment protection, primarily due to the surging rate of ozone depletion, is driving EV sales around the world. At present, around 43% of the total greenhouse gases emitted into the environment are contributed by the automobile sector. Thus, the growing environmental concerns over air quality degradation caused by the increasing amount of exhaust fumes from vehicles are paving the way for various government initiatives toward environment protection, globally.

Second-Life Automotive Lithium-Ion Battery Market Report Coverage
Report Attribute Details
Historical Years 2014-2019
Forecast Years 2020-2030
Base Year (2019) Market Size $430.0 Million
Forecast Period (2020-2030) CAGR 23.1%
Report Coverage Market Trends, Revenue Estimation and Forecast, Segmentation Analysis, Regional and Country Breakdown, Impact of COVID-19, Companies’ Strategic Developments, Competitive Benchmarking, Company Profiling
Market Size by Segments By Type; By Vehicle Type; By Application; By Region
Market Size of Geographies U.S., Canada, Germany, France, U.K., Norway, Sweden, Netherlands, Japan, China, India, South Korea, Brazil, Mexico, South Africa, U.A.E.
Secondary Sources and References (Partial List) China Association of Automobile Manufacturers (CAAM), Copper Development Association, Electric Apparatus and Service Association (EASA), Energy Information Administration (EIA), European Automobile Manufacturers’ Association (ACEA), European Committee of Manufacturers of Electrical Machines and Power Electronics (CEMEP), Institute of Electrical and Electronics Engineers (IEEE)

 

Market Players Engage in Facility Expansion to Gain Competitive Edge

The global second-life automotive lithium-ion battery market is fragmented in nature, with the presence of several players, such as SAMSUNG SDI CO. LTD., GS Yuasa Corporation, BMW AG, Nissan Motor Co. Ltd., and LG Chem Ltd.

In recent years, players in the second-life automotive lithium-ion battery industry have been involved in facility expansion, in order to stay ahead of their competitors. For instance:

  • In February 2020, BMW AG announced the expansion of production capacity and staff for production of electric powertrain components at Plant Dingolfing, Germany. This would help the company to meet the increasing demand for EVs.
  • In October 2019, GS Yuasa Corporation announced that it has started its new lithium-ion battery plant in Hungary. This would help the company to fulfil the increasing market demand in Europe.

Some of Key Market Players in Second-Life Automotive Lithium-Ion Battery Market Include:

  • 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.

Second-Life Automotive Lithium-Ion Battery Market Size Breakdown by Segment

The second-life automotive lithium-ion battery market report offers comprehensive market segmentation analysis along with market estimation for the period 2014–2030.

Based on 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 Vehicle Type

  • Two-Wheeler
  • Passenger Car
  • Commercial Vehicle

Based on Application

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

Geographical Analysis

  • North America
    • U.S.
    • Canada
  • Europe
    • Germany
    • France
    •  U.K
    •  Norway
    •  Sweden
    •  Netherlands
  • Asia-Pacific (APAC)
    • China
    •  Japan
    • South Korea
    •  India
  • Latin America, Middle East, and Africa (LAMEA)
    • Brazil
    •  Mexico
    • South Africa
    •  U.A.E.
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