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How second life batteries can amplify the circular economy across sectors

Circular economy is moving up the political agenda, Tania Saxby, our Head of Sustainability, explains why second life batteries can play a leading role in the circular economy puzzle, helping multiply the impact across a range of sectors.

23/07/2025

Tania Saxby, Head of Sustainability

Circular economy thinking is gaining unprecedented political momentum. The EU has just launched its latest circular economy actions while the UK has established its Circular Economy taskforce. Both initiatives recognise the same thing: that co-ordinated actions are required across industries, with a focus on sectors that consume critical minerals and generate most waste.

This convergence of policy attention comes at a critical juncture. Millions of EV batteries are expected to reach the end of their first automotive life by 2030, yet most still retain 70-80% of their original capacity – which is plenty to meet the growing demand for energy storage required to enable the energy transition. This presents one of Europe’s greatest circular economy challenges and its most promising opportunity. Finding a second life for these batteries enables manufacturers and governments to reduce the environmental impact of both battery production and disposal.

Beyond single solutions: the multiplier effect

As one of the leading companies in second life battery energy storage, we’ve witnessed first-hand how repurposing automotive batteries is evolving as a critical component of the circular economy.

But here is what we’ve also learnt from our work with second life batteries. Sometimes solving one problem well unlocks solutions for several others. Second life batteries don’t just solve one circular challenge, they amplify circular economy principles wherever they’re deployed.

The multiplier effect

The automotive industry: When car manufacturers know their batteries have a guaranteed second life, they can factor that residual value into pricing, potentially making electric cars cheaper. This also helps them to meet Extended Producer Responsibility obligations by providing a ready-made opportunity to repurpose batteries at scale.

The ultimate goal is creating a mindset shift toward designing batteries with second life applications in mind from the outset, dramatically improving the viability of future repurposing opportunities and embedding circularity into the product development process itself.

The industrial opportunity: Another paradox is that making things circular requires substantial energy.  Refurbishing electronics, remanufacturing components, running recycling facilities, are all energy-intensive processes.

For truly circular processes, we need circular energy to power them. Imagine using second life batteries paired with solar panels to run a recycling facility – this is exactly the type of integrated model we need to be scaling. It embeds circular principles across the entire lifecycle chain, creating a closed-loop system where the solution becomes part of the circular infrastructure itself.

In materials supply: There’s another connection most people miss. Electric car batteries and consumer electronics rely on the same critical materials – lithium, cobalt, nickel. Every battery that Connected Energy keeps operational for an additional 10 years means less pressure on mining operations and more materials available for other uses.

When materials are scarce and expensive, extending their productive life creates economic value for everyone in the supply chain while reducing environmental impact from extraction.

Why this matters now

Both the EU and UK are developing circular economy frameworks that will shape industrial policy for the next decade. The UK taskforce is specifically tackling electronics waste, but energy storage policy affects what’s possible across all these interconnected sectors.

When regulations make it easier to repurpose batteries, the effects ripple through car manufacturing, electronics repurposing, and renewable energy deployment. Get the policy right, and you enable circular solutions across multiple industries simultaneously.

Collaborative circularity

We’re not claiming second life batteries solve everything. But by connecting different parts of the circular economy puzzle, they can create value for multiple industries.

As we engage with policymakers and industry partners, we’re committed to sharing these insights and working together to build the interconnected infrastructure that will enable Europe’s circular economy transition.

The energy transition and the circular economy transition aren’t separate challenges – they’re two sides of the same fundamental transformation. Second life batteries demonstrate how addressing them together creates exponential value that neither could achieve alone.

Through this integrated approach, we can move beyond solving individual problems to building systems that solve multiple challenges simultaneously, creating the kind of scalable, interconnected solutions that our climate and resource challenges demand.

Download our whitepaper

Our recent whitepaper explores the technicalities, safety, benefits, and economic potential of repurposing EV batteries for energy storage. Download today to find out more.

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