Technological Developments Boosting Second-Life Automotive Lithium-Ion Battery Market Growth

In 2019, 2.1 million electric cars were sold, and by 2030, the total number of these operational around world is expected to reach 130 million! As these vehicles, along with their components, age, they will lose their efficiency, as do all machines. Thus, with time, there will be a large stock of used vehicle batteries that can no longer be used for automotive traction purposes. Recycling these batteries is a cost-intensive and long process, which is why battery makers generally source virgin lithium metal from mines.

Therefore, P&S Intelligence says that the second-life automotive lithium-ion battery market will grow from $430.0 million in 2019 to $7,392.0 million by 2030, at a high 23.1% CAGR between 2020 and 2030 (forecast period). This is because though depleted batteries can no longer be used to propel larger vehicles, they can still be used in low-speed EVs and for energy storage purposes in other industries, as the remaining 60–80% efficiency of such energy storage devices can fulfill these secondary purposes.

Request to Get the Sample Pages: https://www.psmarketresearch.com/market-analysis/second-life-automotive-lithium-ion-battery-market/report-sample

Apart from energy storage and low-speed EVs, used automotive lithium-ion batteries can be used for charging EVs and in base stations. Among these, the demand for such second-hand devices is highest in base stations, as they serve as an important resource in these places for frequency containment reserves. Moreover, base stations need power to receive and transmit telephone signals, which is why with the expansion of the telecom infrastructure, the usage of second-life EV batteries in base stations is rising.

During the forecast period, the energy storage category is expected to witness the fastest growth in the second-life automotive lithium-ion battery market, under segmentation by application. Due to the concerns regarding global warming and climate change due to carbon emissions, which have been driving the demand for EVs, the renewable energy sector is also growing. “The share of renewables in global electricity generation jumped to nearly 28% in Q1 2020 from 26% in Q1 2019.’, says the International Energy Agency (IEA).

The problem with renewable energy, especially wind and solar energy, is that its output is not consistent, as it depends on the wind speed and amount of sunlight available, respectively. This is why energy storage devices are used at solar and wind power plants to store excess energy during periods of low demand and discharge it to the grid when the electricity demand witnesses a surge. Therefore, with governments around the world producing more solar and wind energy each year, the demand for used EV batteries for use as a supplementary power source is increasing.

In 2019, Asia-Pacific (APAC) dominated the second-life automotive lithium-ion battery market because of the high sales of EVs here, which have led to a large stock of used batteries. China further expects to transition half its entire transportation system to EVs by 2025, which will further lead to a high availability of second-life EV batteries for other purposes. During the forecast period, Europe will experience the fastest industry growth due to the rising adoption of electric mobility.

Moreover, in May 2018, the continent adopted an action plan to produce EV batteries domestically, by focusing on extracting, sourcing, and processing raw materials that go into the cathode, anode, and electrolyte of such devices, manufacturing cells and complete batteries, as well as on their reuse and recycling. Under this initiative, Contemporary Amperex Technology Ltd. (CATL) announced plans to pour $2.0 billion (EUR 1.8 billion) in its Germany-based battery plant. This will lead to a ready supply of used EV batteries, which would allow for their usage in secondary applications.

Make Enquiry Before Buying the Report: https://www.psmarketresearch.com/send-enquiry?enquiry-url=second-life-automotive-lithium-ion-battery-market

Hence, with the growth of the EV and renewable energy industries, the scope for the usage of second-life EV lithium-ion batteries will keep widening.

P&S Intelligence
Contact: +1-347-960-6455
Email: enquiry@psmarketresearch.com
Web: https://www.psmarketresearch.com
Follow us on LinkedIn: https://www.linkedin.com/company/pnsintelligence/

P&S Intelligence is a provider of market research and consulting services catering to the market information needs of burgeoning industries across the world. Providing the plinth of market intelligence, P&S as an enterprising research and consulting company, believes in providing thorough landscape analyses on the ever-changing market scenario, to empower companies to make informed decisions and base their business strategies with astuteness.

This release was published on openPR.