Cost-Benefit Analysis of Downstream Applications for Retired Electric Vehicle Batteries

Abstract

Mass transport conversion to an electrified powertrain requires suitable strategies for processing electric vehicle (EV) batteries after their intended first service life. Due to aging mechanisms, EV batteries lose capacity over their period of use and become unsuitable for their initial application at some point. However, to expand their lifetime and to meet the sustainability demand for EVs, the usage of these batteries in so-called Re-X applications is under intense discussion. Until now, downstream processing has been subject to high uncertainty regarding the expected advances. While many issues on the technical and ecological side have been at least partially resolved, the economics are still under assessment. For this reason, this paper intends to give a well-based outlook on the costs and benefits of three chosen scenarios: reuse, repurpose, and recycle. It is expected that under the given national policies and global market conditions, growing quantities of retired EV batteries will return from the transportation markets. Consequently, the market potential for retired batteries in downstream applications will significantly increase, as well as calls for stable solutions.

Keywords

• lithium-ion battery
• second life
• circular economy
• electric vehicles
• reuse
• repurpose