A new study shows that repurposing end-of-life EV batteries for stationary storage reduces emissions more effectively than immediate recycling, especially in California.
What to do with end-of-life EV batteries
Electric vehicle batteries contain a variety of valuable raw materials, including lithium, cobalt, nickel, manganese, and graphite. As the number of electric cars on the road continues to grow, the demand for these resources is expected to surge. Global demand for lithium alone is projected to reach around 1,300 kilotons annually by 2050, which is nearly 600% more than the amount mined worldwide in 2024. Of that, 1,100 kilotons per year will be needed solely for EV batteries. For cobalt, total demand is expected to double to 520 kilotons per year by 2050 compared to 2024 levels. And the list goes on.
For this reason, when EV batteries reach the end of their lifecycle, they must either be recycled to recover critical raw materials or reused as stationary energy storage systems. These systems can help integrate renewable energy into the grid, manage peak loads, and enhance energy security.
Both recycling and reuse align with the principles of the circular economy. But which path brings greater benefits, immediate recycling or second-life reuse? To answer this, researchers from the University of Münster, Fraunhofer Research Institution for Battery Cell Production FFB, and Lawrence Berkeley National Laboratory conducted a detailed study, using California as a case study.
The California case study
According to the researchers, repurposing end-of-life EV batteries for stationary storage is more effective at cutting greenhouse gas emissions than immediately recycling them. The study recommends prioritizing reuse before recycling. Their analysis shows that by 2050, if all retired EV batteries in California were recycled, they could meet about 61% of the state’s EV battery demand and cut around 48 million tons of CO2.
However, giving priority to second-life applications could reduce emissions even further, saving as much as 56 million tons of CO2.
The study also finds that by 2050, the number of end-of-life EV batteries will far exceed the demand for stationary storage in California. In particular, lithium iron phosphate (LFP) batteries, which are especially suitable for stationary applications, could fully meet this demand by mid-century.
Previous studies have shown that producing EV batteries with recycled materials emits fewer greenhouse gases than using primary raw materials. It is also well documented that reusing EV batteries in stationary systems generates significantly fewer emissions than manufacturing new batteries from scratch. However, this is the first study to systematically compare both approaches.
Three scenarios for EV batteries
To model the outcomes, researchers analyzed a wide range of data, including emissions factors, recycling process efficiency, battery lifespan, and market dynamics. They then tested three distinct scenarios:
- Baseline scenario: 2.5% of end-of-life EV batteries are repurposed for stationary energy storage, while the remainder is immediately recycled.
- Recycling scenario: All EV batteries are recycled without any reuse.
- Second-use scenario: End-of-life EV batteries are first used for stationary storage until that market is saturated. Only the surplus is then recycled.
