When electric vehicle batteries lose about 20% of their initial capacity, they are usually retired from automotive use. However, these used batteries still retain significant storage capability and could be reused in stationary energy systems. Repurposing them for grid-scale storage helps manage fluctuations in renewable energy supply, such as when solar or wind generation drops unexpectedly.
China’s growing demand for reliable energy storage presents a major opportunity for this second-life use of EV batteries. According to recent analysis, the volume of retired EV batteries expected over the next decade could meet the majority of China’s projected needs for grid storage. This approach not only extends the useful life of battery technology but also supports the country’s transition toward cleaner, more stable power systems.