Second Life Batteries: A promising market with policy challenges

There are currently no clear guidelines to make repurposing batteries a European standard. The EU battery regulation provides some focus on a full lifecycle approach, but more mandates are required. A maximum carbon footprint target for the whole lifecycle of battery production would encourage repurposing and reuse.

Battery repurposing has the potential to deliver significant, economic value. In conjunction with upstream materials and manufacturing and downstream recycling, repurposing ensures that the full value of batteries is maximised. But repurposing is complex and comes at a financial cost. Incentives to encourage companies to innovate with repurposing should be put in place.

The opportunities to improve regional resilience and security of critical minerals by keeping battery materials within local territories and ensuring that maximum value is derived before recycling is significant. The forthcoming introduction of the Battery Passport in the EU in 2027 will go some way to improving traceability. This should be backed by policies that assign responsibility for battery collection and hold battery manufacturers responsible for the entire lifecycle of their batteries.

Lack of standardised testing and certification procedures for second-life batteries makes it difficult to guarantee their performance and safety, hindering wider adoption. Regulations are required for the development of standardised testing and safety protocols for second life batteries. Clear regulatory frameworks will foster industrywide best practices and provide a foundation for safe and responsible second life battery implementation.