HomeLatestBattery Lifecycle Shifts as 100000 EVs Retire in 2024

Battery Lifecycle Shifts as 100000 EVs Retire in 2024

The electric vehicle (EV) revolution is entering a new phase—one defined not by acceleration but by transition. With more than 100,000 EVs expected to come off U.S. roads this year, the conversation has pivoted from adoption to disposal. Yet for the lithium-ion batteries powering these vehicles, retirement doesn’t mark an end, but rather a second life in the renewable energy ecosystem.

Many of the EV batteries now being phased out still retain upwards of 50 per cent of their original energy capacity. Instead of being discarded or prematurely recycled, these batteries are increasingly being diverted toward repurposed use in energy storage systems (ESS). This emerging practice is transforming how utilities, industries, and homes manage electricity demand and grid reliability—especially in an era of growing dependence on digital infrastructure.

At the heart of this transformation is Redwood Materials, a Nevada-based company founded by former Tesla CTO JB Straubel. Redwood now handles around 20 gigawatt-hours of batteries annually—equivalent to more than 250,000 EVs—and is responsible for 90 per cent of lithium-ion battery recycling across North America. Its process involves rigorous diagnostics to determine whether a battery should be fully recycled for raw material recovery or adapted for a second life as an ESS.

ESS built from these repurposed batteries offer a unique solution to two converging challenges: the need to stabilise overburdened power grids and the necessity to reduce dependence on fossil fuels. In areas plagued by renewable intermittency or limited EV charging infrastructure—such as rural or remote regions—these batteries can be integrated with solar and wind systems, acting as reliable local energy reserves.

The rise in energy-hungry technologies, from AI servers to autonomous vehicles, is only intensifying the demand for consistent, clean electricity. Second-life battery storage can act as a critical buffer, allowing stored energy to be dispatched during peak usage or outages. Such systems are not only cost-effective but also environmentally responsible, reducing landfill waste and toxic spillage from retired EV batteries.

While repurposing is gaining traction, recycling remains the dominant industrial process. According to projections from IDTechX, a UK-based research firm, the global recycling market for EV batteries is expected to reach $52 billion by 2045. In contrast, the second-life battery market is projected to be worth $5.2 billion by 2035. The difference lies in processing complexity—repurposing, especially at the cell level, requires intricate diagnostics, disassembly, and reconfiguration, all of which elevate costs.

Nevertheless, both recycling and repurposing play pivotal roles in establishing a closed-loop battery economy. As global EV sales grow—1.3 million were sold in the U.S. alone last year—the volume of used batteries entering this ecosystem is set to rise exponentially. How efficiently these batteries are transitioned into their next phase will be critical in determining the overall environmental impact of the EV movement.

In this evolving energy paradigm, the second life of a battery could be its most valuable one.

Also Read: India Simplifies Waste to Energy Plant Approvals 
Battery Lifecycle Shifts as 100000 EVs Retire in 2024
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