From Trash to Treasure: Understanding the Value of Used EV Batteries
As the adoption of electric vehicles (EVs) accelerates worldwide, an important question emerges: what happens to EV batteries once they reach the end of their useful life in vehicles? Contrary to the misconception that these batteries become worthless waste, used EV batteries hold significant value—both economically and environmentally. By unlocking this potential, we can transform what some see as “trash” into valuable resources.
The Lifecycle of an EV Battery
EV batteries are designed to power vehicles for their lifetime. But like all parts on a vehicle, batteries degrade over time and with use, and so not all of them last the distance (the vast majority does). If this happens, the first port of call should be to repair the battery - for example by identfyfing which cells or modules have failed and replacing those to revive the battery pack for use in the vehicle. Over time, battery capacity diminishes, and while they may no longer meet the demands of an EV, they still retain a significant portion of their energy storage capability—often 70-80% of their original capacity. This opens up opportunities for secondary use and recycling.
The Recycling Opportunity
Even when batteries can no longer be reused in vehicle or repurposed to stationary energy storage systems, they still hold value as a source of raw materials. Recycling used EV batteries can recover critical components like:
- Lithium: Essential for producing new batteries.
- Cobalt and Nickel: High-value metals that are finite and expensive to mine.
- Copper and Aluminum: Widely used in battery construction and other industries.
Challenges to Overcome
While the potential of used EV batteries is immense, challenges remain:
- Recycling Infrastructure: Many regions lack mature facilities capable of handling EV battery recycling efficiently. Whilst this is growing with significant investment in jurisdictions the world over, there is still a lot of work to be done in not only processing 'waste' batteries, but also establishing the proper collection, decommissioning, and transportation networks.
- Logistics: Collecting and transporting large, heavy batteries can be expensive. EV batteries are classified as dangerous goods in most jurisdictions, thus requiring appropriately-licensed trucks and drivers.
- Standardisation: Variability in battery designs complicates the recycling process. Some batteries are, frankly, not designed to be repaired or readily dismantled - at best, this adds complexity and cost to the recycling process. Additionally, battery packs from the same vehicle model can change from one generation to the next - let alone observing variability in design across the entire car parc of EV on road. This variety adds to the complexity of safely decommissioning batteries for recycling purposes.
To fully realise the value of used EV batteries, collaboration across industries is essential. Automakers, battery manufactures, governments, peak bodies, and circular economy specialists must all work together to turn trash into treasure. By focusing on reucing, repurposing, and recycling batteries we can keep them in circulation at their highest value AND reduce their environmental impact to create a more sustainable future.
At Infinitev, we exist to make this a reality. Talk to us about how we can help you extract the most value out of your batteries.
Cover image credit: Photo by Donald Giannatti on Unsplash
