McKinsey’s latest energy storage report projects that the second-life EV battery market will reach $30 billion annually by 2030, driven by the economics of repurposing batteries that retain 70-80% capacity for stationary storage applications at 40-60% lower cost than new cells. The analysis identifies commercial and industrial peak shaving, grid frequency regulation, and off-grid solar storage as the highest-value applications.
Scaling Challenges
Despite the compelling economics, the second-life market faces barriers in battery health assessment standardisation, warranty frameworks, and insurance underwriting for repurposed packs. The report recommends that automakers embed standardised battery management system data access into their designs to facilitate efficient grading and repurposing.
Automotive OEMs are increasingly viewing second-life value as a competitive differentiator, with BMW, Nissan, and BYD all establishing dedicated repurposing divisions to capture residual battery value.
