Supply Chain: Recycling & Secondary Markets

Battery Repurposing: A Budding Industry Facing Fierce Competition High Cost of Repurposing

Used battery buying cost + repurposing cost could exceed the price at which a new battery can be purchased Transportation costs can be prohibitive, since LIBs are Class 9 hazardous materials (as per DOT Diagnostics form a major part of the cost - need to be rapid and accurate Data-driven diagnostics at the module and pack level (such as those offered by Smartville & ReJoule) are promising but need to be validated extensively to be generalizable

Fragmented Policy

Cumbersome Certifications

Requires cooperation from OEMs but they are unwilling to share the liability burden Certification processes are specific to every cell type tests need to be repeated even if two cell types are largely identical Inefficient testing procedures UL standards UL 1974) are not strictly enforced Perceived safety risk, even though there are no reported thermal events in second life battery assets yet

Currently the US does not have EPR in all states New Jersey passed a bill and 12 others to follow). Californiaʼs Senate Bill 615 (passed) makes battery digital identifiers mandatory. US DOEʼs focus has shifted towards supply chain onshoring, support for circularity withdrawn China prioritizing recycling over reuse CATL currently at over 96% Li recovery rate) EU regulation incentivizes recycling more than repurposing (figure below)

Standard for Safety – Evaluation for Repurposing or Remanufacturing Batteries Standard for Safety – Standard for Batteries for Use in Stationary, Vehicle Auxiliary Power and Light Electric Rail LER Applications Standard for Safety – Energy Storage Systems and Equipment Standard for the Installation of Stationary Energy Storage Systems, International Fire Code

Selling price comparison between new battery and SLB and the SLB repurposing cost composition (except for battery cost). Source: Li et al. 2023. Source: American Council for an Energy-Efficient Economy ACEEE, 2025

Regulatory framework (in hierarchical order) for second-life batteries. Source: Roy et al. 2025

The share of EV batteries ‘In Repurposingʼ and ‘In Recyclingʼ under the assumptions of EU Battery Regulation BR) being absent OFF) and present ON. Source: Seika & Kubli 2024

Extracted from the PDF; charts and images may read imperfectly.