Second Life EV Battery Market

The global second life EV battery market size was USD 1.48 Billion in 2025 and is expected to register a revenue CAGR of 22.4% during the forecast period. Market revenue growth is supported by the growing volume of electric vehicles reaching the end of their automotive service life while still retaining, according to UK second-life battery specialist Connected Energy, 75 to 80% of their original capacity, a residual value pool that grid-scale energy storage developers are increasingly capturing rather than sending directly to recycling. The European Committee for Standardization published EN 18061:2025 in September 2025, establishing the first dedicated European standard for the safe repair, reuse, and preparation for repurposing of EV batteries, aligned with the EU Battery Regulation's Article 14 requirement that battery management systems provide state-of-health data access to facilitate reuse and repurposing. B2U Storage Solutions, the largest disclosed second-life battery energy storage developer in the United States, closed a USD 45 million structured finance fund in December 2025 covering seven battery energy storage system projects using second-life electric vehicle batteries, and confirmed in June 2026 a strategic supply agreement with Waymo to repurpose batteries from its autonomous vehicle fleet. Every additional gigawatt-hour of first-life EV battery deployment today becomes a future second-life battery supply pipeline, and the technology's ability to avoid the cost of remanufacturing cells from scratch gives second-life battery energy storage systems a structural cost advantage over new-cell systems for grid applications that do not require maximum energy density. These are some of the key factors driving revenue growth of the market.

Passenger EV batteries, commercial and fleet EV batteries from buses, trucks, and robotaxis, and consumer light EV batteries are the source categories that constitute the second life EV battery market, repurposed into grid-scale, commercial and industrial, EV-charging-support, and residential energy storage systems by a small but growing group of specialist second-life battery integrators. For instance, in June 2026, B2U Storage Solutions announced a strategic supply agreement with Waymo to repurpose batteries from Waymo's autonomous vehicle fleet once retired from automotive use, installing them into grid-connected battery energy storage systems providing services in electricity markets from California to Texas. Passenger EV batteries account for the largest share of second-life supply today given the scale of the existing global passenger EV fleet, though commercial and fleet EV batteries from buses, trucks, and autonomous vehicle fleets are emerging as a faster-growing supply category because fleet operators retire vehicles in larger, more predictable batches than individual consumer EV owners.

However, second-life battery deployment depends on consistent access to reliable state-of-health data for each retired battery pack, and the EU Battery Regulation's Article 14 requirement that battery management systems provide this data to third parties is only progressively taking effect, meaning many retired batteries today still lack the standardised documentation that EN 18061:2025 and similar frameworks are designed to eventually provide. Second-life battery packs also carry lower energy density and a shorter remaining service life than new-cell systems, restricting their competitiveness to grid applications where the levelized cost of storage matters more than maximum energy density or footprint, such as stationary peak-shaving and renewable energy time-shifting rather than space-constrained applications. The second-life market also remains dependent on a steady, predictable supply of retired EV batteries reaching end-of-first-life at scale, a supply pipeline that will not reach its full potential volume until the current generation of EVs, sold predominantly over the past five to ten years, completes its typical eight-to-twelve-year automotive service life. These factors substantially limit second life EV battery market growth over the forecast period.

Based on battery source, the global second life EV battery market is segmented into passenger EV batteries, commercial and fleet EV batteries, and consumer light EV batteries. The passenger EV battery segment commands the largest revenue share because passenger EVs represent the large majority of the global EV fleet and have been on the road longest, giving this segment the deepest and most immediately available pool of batteries reaching the end of their automotive service life, with B2U Storage Solutions' battery energy storage systems having sourced packs from passenger EV manufacturers including Ford, General Motors, Honda, Nissan, and Tesla.

The commercial and fleet EV batteries segment is expected to register a rapid revenue growth rate in the global second life EV battery market over the forecast period. Commercial and fleet vehicles, including electric buses, delivery trucks, and autonomous robotaxi fleets, retire from service in larger, more predictable batches than individually owned passenger EVs, and fleet operators have direct commercial incentive to monetise retired batteries through structured supply agreements rather than dispersed individual sales. B2U Storage Solutions' June 2026 strategic supply agreement with Waymo, and Connected Energy's May 2025 partnership with Forsee Power to develop second-life energy storage using ZEN 35 and ZEN 42 battery packs from roughly 1,500 electric buses across Europe, illustrate how fleet-operator battery pipelines are becoming a distinct and fast-scaling supply channel alongside the broader passenger EV battery pool.

• 01What is the global second life EV battery market size in 2025 and what CAGR is expected during 2026-2035?
• 02What percentage of original capacity does a retired EV battery typically retain, according to Connected Energy?
• 03What USD 45 million fund did B2U Storage Solutions close in December 2025, and what projects does it cover?
• 04What strategic supply agreement did B2U Storage Solutions sign with Waymo in June 2026?
• 05What does EN 18061:2025 establish, and how does it relate to the EU Battery Regulation's Article 14 requirement?
• 06What testing facility did Connected Energy announce in January 2026, and what will it be used for?
• 07What partnership did Connected Energy and Forsee Power sign in May 2025, and what battery packs does it cover?
• 08Why is the commercial and fleet EV battery segment growing faster than the larger passenger EV battery segment?
• 09Why does 4R Energy's operating history since 2010 make Japan an early mover in the second-life battery market?
• 10Why does the absence of standardised state-of-health data remain a structural constraint on second-life battery market growth?

This report covers the global second life EV battery market across all major battery sources, applications, battery chemistries, and geographic regions. Primary research combines panel conversations with industry experts and is cross-referenced against company disclosures, regulatory and standards body publications, and government agency data. All market size figures use 2025 as the base year with a 2026-2035 forecast period.