Today, as the electric vehicle (EV) industry develops rapidly, cars once classified as waste are now seen as valuable resources. Lithium batteries from written-off EVs are being hunted at auctions in Australia, and many parts of the world are discovering in these “scrap heaps” both economic and environmental opportunities never imagined before.
Current Situation in Australia
Surging Demand
- Pickles, one of Australia’s largest salvage car auction houses, sells about 100 written-off EVs per month, mainly Teslas, BYDs, and MGs.
- Sales of written-off EVs at Pickles grew 200% in the last financial year compared to the previous year.
- Research by Pickles testing more than 250 used EVs shows that even vehicles with over 120,000 km on the odometer still retained an average of 90.1% of their original battery capacity.
Second-Life Potential
- When an EV battery drops to around 70–80% of its original capacity, it is often deemed no longer suitable for traction use, yet it remains well-suited for less demanding applications such as solar storage or backup systems.
- The Infinitev project – in partnership with Sustainability Victoria – repurposes EV batteries for stationary storage, extending their useful life by 5–10 years.
Expert Insights and New Research
Real Battery Lifespan and Condition
- Pickles’ tests revealed that even at 120,000 km, average remaining battery capacity is ~90%.
- Lightly used EVs (<20,000 km) retained about 98.2% of their capacity.
- Brands like Hyundai and BYD showed excellent retention: Hyundai at ~99.31% after 39 months/29,237 km, BYD at ~98.62% after 17 months. Tesla tested slightly lower, at ~93.3%.
Expert Analysis:
Brendon Green of Pickles emphasized that these results show EV batteries do not degrade as quickly as many feared, making second-life applications more viable. Battery scientists add that degradation strongly depends on charging patterns, operating temperature, and management systems. With proper care, useful life can extend far beyond initial projections.
Environmental and Economic Benefits
- Waste projections: Researchers at the University of Technology Sydney estimate that by 2030, Australia will face about 30,000 tons of end-of-life EV batteries. This could rise to ~360,000 tons by 2040 and ~1.6 million tons by 2050 if unmanaged.
- Risks of landfill disposal: Chemicals such as LiPF₆ pose toxicity risks if leaked; damaged packs may ignite or explode.
- Cost savings: Second-life batteries can be up to 50% cheaper than new cells for industrial storage projects, as shown by government-backed trials with Relectrify.
Barriers and Challenges
- Infrastructure and regulation: Libby Chaplin, CEO of the Battery Stewardship Council, stresses the urgent need for facilities to collect, sort, and process batteries before 2026–27. Without this, waste will pile up and risks will rise.
- Safety: Improperly handled packs can catch fire. A notable incident near Sydney Airport involved a repurposed EV battery explosion damaging vehicles.
- State-of-Health (SOH) assessment: Accurately gauging remaining life requires advanced diagnostics. Without standardized SOH evaluation, repurposed batteries face uncertainty in value and reliability.
- Supply chain logistics: Repurposing requires a complex chain – collection, disassembly, safe transport, reassembly. Without domestic infrastructure, much value could be lost to exports .
Key Industry Voices
- Libby Chaplin, Battery Stewardship Council CEO: “EV batteries represent both risk and opportunity, and industry is not yet dealing with this at scale.”
“We may manage today’s flow of waste, but must have infrastructure ready by 2026 or 2027.” - Matt Genever, Sustainability Victoria (Infinitev project): “The circular economy is key. Repurposing and recycling reduce landfill waste while providing short-term energy storage to businesses and communities.”
- CSIRO experts:
- Battery waste may rise 20% annually, exceeding 100,000 tons by 2036 without action.
- Need for recycling technologies to recover critical materials like lithium, cobalt, nickel.
- Battery management researchers:
- Stress the importance of reliable SOH diagnostics and advanced Battery Management Systems (BMS2) for second-life use cases.
- Projects like “Second Lives for EV Batteries” (iMOVE Australia & Edith Cowan University) are mapping costs, risks, and economic models.
Model of electric vehicle battery reuse around the world.
- In Europe, the US, Japan, and South Korea, repurposed EV batteries are already powering street lighting, solar homes, and microgrids.
- Automakers like BMW, Nissan, Volkswagen are piloting large-scale second-life storage for communities and events.
- China is actively deploying repurposed EV batteries in community energy storage and grid buffering, with early results showing high efficiency and lower cost per kWh than new packs.
Future Trends and Projections
Trend | Description |
---|---|
Rapid growth of second-life market | As more EVs reach end-of-life (8–15 years, or ~70–80% SOH), repurposing demand will soar. |
Standardized SOH diagnostics | Accurate measurement of remaining capacity will become essential for market trust. |
Policy support | Subsidies, safety regulations, collection rules, and second-life standards will shape the sector. |
Infrastructure investment | Recycling centers, test labs, safe transport hubs, and logistics chains must be built. |
Diverse applications | From solar home storage to event backup and Vehicle-to-Grid (V2G) integration. |
Waste electric vehicle batteries are moving from the shadowy corner of waste to the center of energy innovation. In Australia, the signs are clear: demand for used batteries is growing, their economic value is being recognized, and many second-life projects are springing up.
If managed properly, EV battery reuse not only reduces the burden on the environment. From hazardous waste, to the risk of explosion. Now it also helps fill the critical energy storage gap in the transition to renewable energy.
The growth of the second-life battery industry has also brought a wave of startups in the renewable energy sector. Young companies focused on collecting, recycling and improving old batteries are becoming important links in the green energy ecosystem. This is not only a business opportunity but also a solution to the national energy problem.
According to: vietnamfinance and sources collected from the internet.
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