Spotlight on the Repurpose Market

Repurposing End-of-Life EV Batteries for Energy Storage

This article focuses on the repurposing of End-of-Life (EOL) electric vehicle (EV) batteries. While the reuse market involves reselling batteries for continued use in vehicles, the repurposing market is fundamentally different. Buyers in this segment require different technical information and apply distinct pricing methodologies.

Repurposing an EV battery involves taking a battery originally designed for use in an electric vehicle and modifying or integrating it for a new application. The primary destination for these batteries is Energy Storage Systems (ESS), and more specifically Battery Energy Storage Systems (BESS), where they are used to store and discharge electricity at grid or commercial scale.

As EV battery lifespans continue to improve - often extending beyond the usable life of the vehicle itself - the availability of EOL batteries suitable for BESS applications is expected to grow significantly. As a result, understanding the key decision-making criteria for BESS operators is essential.

Key factors for BESS operators

Capacity (kWh)

Capacity represents the total amount of energy a battery can store. For BESS operators, this is the fundamental unit of value.

State of Health (SOH)

SOH measures how much usable capacity remains compared to the battery's original specification. It is typically assessed through testing and reflects degradation over time. A lower SOH indicates reduced usable energy and may also signal broader performance risks. Without SOH data, many buyers will discount or exclude a battery entirely.

Price (£/kWh)

Pricing is typically benchmarked against usable energy capacity rather than the battery as a whole. This makes SOH directly critical to valuation.

For example, a battery with a nominal capacity of 50 kWh and an SOH of 80% provides 40 kWh of usable capacity. At a valuation of £30 per kWh, the battery would be worth £1,200.

Because buyers can alternatively purchase new, purpose-built ESS batteries, pricing pressure in the market is significant and must reflect both performance uncertainty and refurbishment potential.

Market distinction

While the reuse market places significant emphasis on compatibility with a specific vehicle, the repurposing market is primarily driven by energy capacity, degradation status, and price per usable kWh.

Over the two articles, we have discussed two different markets of different size, attracting different pricing and requiring different information. Sellers therefore need to consider carefully what technical information they disclose, as this directly impacts buyer confidence and pricing outcomes.

At recell.store, we aim to connect buyers and sellers of EOL EV batteries. By working closely with buyers, we help ensure sellers have access to the right information needed to make informed commercial decisions.