Second-Life Automotive Lithium-Ion Battery Market to Generate Revenue Worth $7,392.0 Million by 2030

  • Published: October 2020

The expensive battery recycling process and the growing adoption of EVs are the major growth factors for the global second-life automotive lithium-ion battery market. As a result of these factors, the industry is expected to reach $7,392.0 million by 2030, projecting a CAGR of 23.1% during the forecast period (2020–2030).

Moreover, the ongoing COVID-19 pandemic has a negative impact on the second-life automotive lithium-ion battery market. As a result of the pandemic, countries have taken several measures to curtail the spread of the disease, including social distancing and restriction on the movement of goods and services, which result in disruption of supply chain.

Nickel–Cobalt–Aluminum (NCA) Category to Exhibit Fastest Growth in Forecast Period

The second-life automotive lithium-ion battery market is categorized into lithium-ion manganese oxide (LMO); lithium ferro phosphate (LFP); lithium–nickel–manganese–cobalt oxide (NMC); lithium–titanate oxide (LTO); and NCA, on the basis of type. Among these, the NCA category is expected to exhibit the fastest growth in the market, during the forecast period. This can be attributed to the fact that NCA battery offers greater energy density over others and has superior fast charging capabilities.

Furthermore, on the basis of application, the second-life automotive lithium-ion battery market is categorized into energy storage, EV charging, base station, and low-speed EV. Among these, the energy storage category is expected to advance at the highest CAGR in the forecast period, owing to the fact that second-life battery provides a reserve energy capacity for maintaining a utility’s power reliability at optimum cost by displacing more expensive and less-efficient assets. Moreover, usage of second-life battery for energy storage enables deferring transmission and distribution investments, taking advantage of power-arbitrage opportunities by storing renewable power for use during periods of scarcity.

Geographically, the second-life automotive lithium-ion battery market in Asia-Pacific (APAC) held the largest share in 2019. Furthermore, the region is expected to remain the largest market during the forecast period, in terms of overall battery capacity usage and revenue. This is primarily due to the highest sales of EVs in China, among all countries worldwide.

Facility Expansion – the Most Common Strategic Measure Taken by Market Players

The players operating in the second-life automotive lithium-ion battery market are involved in facility expansion, to attain competitive edge in the industry. For instance, in January 2020, GS Yuasa Corporation announced that it has decided to expand production capacity for lithium-ion batteries used in hybrid vehicles. This would support the growth in demand for electric and hybrid vehicles.

Similarly, in July 2019, BMW AG announced its plan to double the production capacity for lithium-ion battery packs at its U.S. factory. The fourth-generation batteries would be used in plug-in hybrid models of the BMW X5 and the future BMW X3.

Some of the major players in the global second-life automotive lithium-ion battery market are 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., and Panasonic Corp.