Europe’s second-life battery industry is charging up

What are second-life batteries?

Second-life batteries are batteries that, after being used in electric vehicles, still retain 70-80% of their original capacity. While they may no longer be suitable for powering EVs, they can be repurposed for less demanding applications, such as storing energy from renewable sources like wind or solar. Instead of discarding these batteries, giving them a “second life” helps reduce waste and makes battery production more efficient.

In a time when the demand for both electric vehicles and renewable energy is soaring, Europe is taking bold steps to ensure that the life cycle of batteries is extended, reducing the environmental footprint. Second-life batteries also help ease the pressure on the supply chain for raw materials, making them an eco-friendly and cost-effective option.

The key players

The Battery Atlas breaks down the various companies across Europe that are involved in the second-life battery process. Each company plays a specific role in bringing these batteries back into circulation:

1. Collection and transport: Companies like BMW Group, Land Rover, and Honda are responsible for gathering used EV batteries and ensuring they’re safely transported. Since these batteries are potentially hazardous, they need to be handled with care and follow strict safety regulations.
2. Testing and diagnosis: Once collected, the batteries are thoroughly tested to determine their health and usability. Firms like Mercedes-Benz Energy in Germany specialise in this area, using sophisticated tools to assess whether a battery is suitable for reuse. This step ensures that second-life batteries will be reliable and safe in their new roles.
3. Disassembly: Disassembly is an important part of the process. Companies like Connected Energy in the UK break down the batteries into smaller components, separating out parts that can be reused from those that need to be recycled. This process helps maximise the value of each battery.
4. Integration and installation: After testing and disassembly, the batteries are ready to be integrated into new systems. Renault Group in France and EcarACCU in the Netherlands are among the companies specialising in this area. They use second-life batteries in everything from home energy storage to large-scale renewable energy projects.

A look across Europe

Germany is the biggest player in the second-life battery industry, with 19 companies involved in various stages of the process. The country’s leadership in automotive manufacturing and its central location in Europe make it a natural hub for battery recycling and repurposing. With companies like Audi and Mercedes-Benz at the forefront, Germany is helping drive innovation in the sector.

The UK is also making significant strides, with companies like Zenobe and Honda focusing on using second-life batteries for grid storage. By repurposing EV batteries, these companies help store excess energy produced by renewable sources, ensuring a stable energy supply even when the sun isn’t shining or the wind isn’t blowing.

In Spain, firms like BeePlanet Factory and Altabat are working on integrating second-life batteries into energy storage systems for homes and businesses. This helps the country reduce its reliance on fossil fuels and move towards its renewable energy goals.

Challenges and opportunities

Despite its promise, the second-life battery industry still faces some challenges. One of the biggest hurdles is the lack of standardised testing procedures across Europe. With no universal standard for assessing the condition of used batteries, companies often develop their own methods, which can lead to inconsistencies and delays.

On the flip side, the growing demand for electric vehicles means that more and more batteries will become available for second-life use in the coming years. As EVs become more popular, the supply of batteries nearing the end of their first life will increase, providing a steady stream of material for repurposing.

The European Union’s regulations on battery recycling and minimum recycled content in new batteries will also push companies to embrace second-life solutions. These regulations not only promote sustainability but also make financial sense, as repurposing batteries is often cheaper than sourcing raw materials for new ones.

The road ahead

Looking forward, the second-life battery industry is set to expand rapidly. With so many companies already involved and the supply of used batteries on the rise, the future looks bright for this growing sector. Europe is well-positioned to lead the way in second-life battery innovation, with a focus on sustainability and cutting-edge technology.

As the Battery Atlas highlights, these companies are more than just participants in a growing market—they’re pioneers in creating a circular economy for batteries. By repurposing batteries that would otherwise be discarded, they’re helping to reduce waste, cut costs, and promote the use of renewable energy.

In the years ahead, second-life batteries will play a crucial role in Europe’s efforts to meet its climate goals. With ongoing support from governments and the private sector, this industry will continue to grow, offering a sustainable solution to the challenges of energy storage and battery waste.

Conclusion

The second-life battery industry is still in its early stages, but it’s growing fast. With 80 companies already involved across Europe, the continent is embracing this innovative approach to battery management. By giving batteries a second life, Europe is not only reducing its environmental impact but also creating new opportunities for renewable energy and sustainability. As electric vehicle adoption increases, so too will the supply of second-life batteries, making this industry one to watch in the coming years.

Source: Battery Atlas