Used electric car batteries are stacking up in recycling warehouses, where they join new ones from cancelled orders. This is a wonderful opportunity for homeowners seeking affordable solutions for renewable energy projects. Yet, quite surprisingly, Supply & Demand Chain Executive reports that 80% of these batteries go to material recycling facilities. We investigate why second-use EV battery demand is so slow.
What We Learned About Second-Use EV Battery Demand
- Electric vehicle battery warranties are part of new EV sale conditions. Surplus unused from over-production, and used ones may not have these assurances. There is also a lack of official testing standards.
- Purchasers may consider new electric vehicle batteries a better proposition in the light of falling prices. The carbon benefits from repurposing used ones do not tip the scales in that direction.
- Electric vehicle batteries lacking sufficient capacity, are almost always old technology which is more likely to fail. Some purchasers may interpret this as more likely to catch fire.
The electric car battery repurposing industry is still largely in start-up mode, but gaining traction. The industry selling new EV batteries is well-established, and highly competitive due to economies of scale. This is yet another reason why second-use EV battery demand is so slow.
U.S. Sales of Used EV Electric Vehicle Batteries
It is still too early to predict what the impact of President Trump’s new import tariffs will be. However, as Supply & Demand Chain Executive reiterates, the United States is a classic example of the impediments facing the used electric car battery market worldwide.
The U.S. does not yet have the supportive infrastructure, and experience benefiting its European and Asian counterparts. There are few local standards for testing. The purchaser may therefore face difficulties when arranging finance.
But perhaps the greatest impediment of all is a gap between value perceptions. Private sellers may expect to recoup half their investment, whereas the market often pays as low as 25%.
Clearly, a number of things will have to change, before second-use battery sales take off this side of the Pacific.
More Information
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