Used EV(electric vehicle) Batteries

Market Status

Global Market Status

The global used electric vehicle (EV) battery market is experiencing significant growth due to the increasing adoption of electric vehicles. According to Custom Market Insights (CMI), the global market size of the used EV battery market was estimated to be $255 million in 2021 and is projected to reach $1.23 billion in 2022. By 2030, it is expected to reach approximately $92 billion, with a compound annual growth rate (CAGR) of 45.2% from 2022 to 2030. The market for used EV batteries is expected to grow at an annual CAGR of around 45.2% during the forecast period from 2022 to 2030. In terms of revenue, it was valued at approximately $255 million in 2021 and is projected to reach around $92 billion by 2030. The market is expected to grow at a significant pace driven by various factors.

The substantial growth in the electric vehicle sector in the Asia-Pacific region is primarily driven by strong demand for used EV batteries. In 2021, the Asia-Pacific region accounted for over 35% of the global used EV battery market, leading the world market. The region's market share is expected to increase during the forecast period. The demand for used EV batteries in the Asia-Pacific region is mainly driven by China.

Domestic Market Status

The future of scrap yards is closely tied to the increasing volume of used batteries, especially in the context of electric vehicles (EVs). The number of EVs has been steadily increasing in South Korea since their introduction in 2013, with annual sales exceeding 100,000 units since 2020. EV batteries typically need to be replaced when they have 70-80% of their remaining lifespan (ranging from 5 to 20 years). As a result, the number of used batteries is projected to increase significantly in the coming years. By 2025, it is estimated that there will be 30,000 used batteries in South Korea, and by 2030, the number is expected to reach 100,000. Globally, it is predicted that there will be 7.8 million tons of used batteries by 2040, with a market size of approximately 80 trillion won.

The value chain of used batteries involves collection, sorting, processing, distribution, and sales. Scrap yards play a crucial role in the collection, sorting, and processing stages. They serve as the primary point of contact for acquiring used batteries and are well-positioned to lead in these areas. With an increasing market share and a focus on operational transparency, scrap yards have a high probability of being designated as key collection centers by the government.

In the future, scrap yards are likely to emerge as a key player in the front-end of the used battery value chain. The most critical aspects for the industry to focus on are the "collection and sorting" processes. The biggest challenge in traditional recycling lies in the fact that people often do not recycle from the beginning or discard batteries in a non-recyclable state. However, with the high likelihood of people recycling batteries due to cost and legal issues, there are minimal instances where batteries become completely non-recyclable. Therefore, the ability to classify and assess the value of these large volumes of recyclable materials and distribute them to appropriate demand sources has become a key question specific to the used battery market.