3 Battery Stocks to Buy and Hold for the Rest of the Decade: Honeywell, EnerSys, and More

The global battery market is projected to reach $329.84 billion by 2030 with a CAGR of 16.4%. Honeywell International and EnerSys are two companies that are well-positioned to benefit from the growth in the battery sector, with Honeywell's spin-off of its advanced materials business and EnerSys' focus on providing power solutions for data centers. Joby Aviation is also mentioned as a potential opportunity.

The global battery market is projected to reach $329.84 billion by 2030, with a CAGR of 16.4% [1]. As the demand for electric vehicles (EVs) continues to grow, the second-life EV battery market is poised to become a significant player in the energy sector. According to a new report by MarketsandMarkets, the second-life EV battery market is estimated at ~25-30 GWh in 2025 and is projected to reach ~330-350 GWh in 2030 at a CAGR of ~65% during the forecast period [1].

The growing adoption of EVs is expected to fuel a multibillion-dollar market for second-life batteries by 2030, particularly those based on lithium iron phosphate (LFP) chemistry. LFP batteries are ideal for stationary applications like grid energy storage, residential systems, EV charging stations, and data centers due to their inherent safety, long cycle life, and favorable cost-effectiveness. The declining cost of second-life batteries enhances economic viability, especially as new battery prices fall. At the same time, their reuse supports a circular economy by reducing CO2 emissions by several tonnes annually and mitigating raw material scarcity [1].

Utility-scale grid services hold the largest share of the second-life EV battery market. These repurposed batteries are attractive for grid applications due to their cost advantage (up to 70% cheaper than new batteries in 2025) and their suitability for less-demanding, lower-cycle stationary uses, such as grid balancing, renewable energy integration, and backup power [1]. Major OEMs such as Volvo, BMW, Nissan (in collaboration with Sumitomo), and Volkswagen are partnering with energy providers and startups to repurpose retired EV batteries for stationary storage projects. For example, Volkswagen Group's partnership with Audi and the energy company, E.ON, has initiated projects using used EV batteries to stabilize grid loads and manage peak demand [1].

The continued predominance of lithium-ion technology is expected to remain strong, with second-life battery applications playing a vital role in advancing the global energy transition. However, there are certain challenges with this battery chemistry, such as the potential for supply-related drifts and safety-related concerns, which may shift traction to other alternatives like nickel-zinc or flow batteries [1].

North America is expected to be the leading market in terms of the installed capacity of second life EV batteries. The region's advanced grid infrastructure and strong policy incentives make it a prime location for deploying second-life EV batteries for various applications, including data center stationary energy storage, microgrids for telecommunications and commercial backup, EV charging buffer systems, and domestic solar and grid-support systems [1].

Key players in the second-life EV battery market include Tesla, Volvo, Toyota Motor Corporation, BMW Group, Nissan Motor Corporation, Connected Energy, B2U Storage Solutions, and Rejoule [1]. These companies are strategically positioning themselves to capitalize on the growing demand for second-life EV batteries, driven by advancements in battery management systems, modular system design, growing policy momentum for the circular economy, and energy security.

In conclusion, the second-life EV battery market is poised for significant growth, driven by the increasing adoption of EVs and the need for cost-effective, sustainable energy solutions. As the global energy transition continues, the role of second-life EV batteries in supporting grid stability and renewable energy integration is set to become increasingly important.

References:
[1] https://finance.yahoo.com/news/second-life-ev-battery-market-105500516.html