- Even after years of use, electrical automobile batteries are inclined to have numerous usable capability for various use instances.
- Battery recycling firm Redwood Supplies mentioned EV batteries could be repurposed into stationary power storage programs earlier than getting recycled.
- Such programs can assist stabilize the electrical energy grid and assist international locations transfer away from fossil fuels.
Electrical automobile gross sales have been rising quickly over the previous decade, and lots of of these used EVs at the moment are approaching the tip of their lifespans. That will seem to be a bunch of them are going to finish up in some landfill, however EVs aren’t like gasoline vehicles.
An older, high-mileage EV turns into a primary candidate for the recycling and restoration of important supplies from its battery, repurposing them into “second-life” use instances—assume stationary power storage—that can lengthen their worth and contribute to the battery round financial system.
Redwood Supplies, a battery recycling firm spearheaded by former Tesla govt JD Straubel, is main North America’s battery recycling and repurposing trade. The corporate mentioned in a weblog publish on Friday that it was receiving 20 gigawatt-hours of batteries yearly, equal to 250,000 EVs. It now accounts for 90% of all lithium-ion batteries and materials recycling in all of North America.
It is why the corporate is launching Redwood Vitality: a brand new division dedicated to turning outdated EVs into modular power storage programs (ESS). Redwood Vitality might be centered on the business house for now, not like, say, Tesla’s house Powerwall setups.

EV Battery Round Financial system
Photograph by: IDTechEx
It really works as a result of many of those batteries have greater than 50% of their unique usable capability, which means they’re nonetheless worthwhile for second-life use instances, in line with the corporate. That makes them appropriate for ESS, that are rising because the second house for these used EV batteries.
The booming ESS market is well timed. Vitality-hungry knowledge facilities powering our ChatGPT searches and AI networks are straining the grid and have kick-started a brand new seek for different power sources. Redwood says ESS powered by these recycled batteries can cut back the burden on the grid. Additionally they forestall the spillage of dangerous chemical compounds into the setting.
Repurposing these batteries can occur at a number of phases; on the pack, module, or cell ranges, in line with U.Okay.-based analysis agency IDTechX. The deeper the battery disassembly, the steeper the prices of repurposing. However going all the best way to the cell degree additionally permits corporations to select the best-performing cells after which create a second-life battery system utilizing them.

Tesla’s 4680 battery cells used on the Cybertruck and Mannequin Y.
After Redwood recovers the packs, it safely shops them earlier than testing. They then bear diagnostic exams to find out if the battery must be recycled or whether or not it may be put into second-life use. The packs that also have significant power capability are then transformed to power storage batteries, no matter which firm initially made them or the chemistry of the cells.
They then go on to their second use, which may contain impartial power storage programs for a family or business use, like supporting AI knowledge facilities. They might even be powered by photo voltaic or wind power in rural areas the place the EV charging infrastructure tends to be much less developed, however nonetheless allow houses in these areas to drive EVs usually—the EV battery could be charged by the stationary power storage programs.
Automobile patrons within the U.S. bought a file 1.3 million totally electrical and plug-in hybrid automobiles final yr, a 7.3% improve from the yr earlier than. Which suggests a whole bunch of gigawatt-hours of batteries will method the tip of their life within the coming years. The ESS market gained’t essentially be constrained by provide, however by how briskly and successfully these batteries are repurposed and put again to make use of.

Photograph by: Redwood Supplies
Greater than 100,000 used EVs will come off the U.S. roads this yr alone, the corporate estimates, and that quantity is predicted to proceed rising over the approaching years. Nonetheless, the recycling trade, the place some important supplies are recovered after which put again into the availability chain to make all new batteries, is predicted to develop a lot sooner than the repurposing trade, IDTechX projected.
The worldwide battery recycling market is predicted to be value $52 billion by 2045, whereas the second-life battery trade is forecast to achieve $5.2 billion by 2035.
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