The storage capacity for second-life batteries will increase through 2030 owing to the rapid adoption of electric vehicles (EVs), according to a new study released by Guidehouse Insight.
The available capacity from second-life batteries is expected to grow at a 75.7% compound annual growth rate for battery EV (BEV) batteries and a 61.3% CAGR for plug-in hybrid EV (PHEV) batteries by 2030, according to the study.
The trend towards larger EV battery capacities is also expected to drive the market.
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Growth for this market is largely driven by commercial stakeholders that are identifying opportunities for second life use throughout the EV battery value chain.
Although some policy around second life batteries exists globally, more focus from a regulatory perspective is needed in this market to encourage growth at scale.
Maria Chavez, research analyst with Guidehouse Insights, said: “The accelerated adoption of EVs is being celebrated for introducing a significant step toward a clean energy transition by helping to reduce the amount of greenhouse gases (GHG) emitted into the atmosphere.
“Forecasts show growth for 2LB markets in line with the adoption of EVs and demand for cost-effective energy storage solutions.”
Read more about the report.