Reviving EV Batteries for Energy Storage: A Second Chance at Life

Used electric vehicle batteries are being repurposed for energy storage systems, benefiting from the growing energy storage market, stabilizing renewable energy output, and conserving critical minerals. This strategy also helps battery makers in a cooling EV market. Automotive companies like GM are already taking notice and investing in used-battery powered storage ventures.

Used electric vehicle (EV) batteries are being repurposed for energy storage systems, providing a significant boost to the growing energy storage market. This strategy not only stabilizes renewable energy output but also conserves critical minerals, which are essential for battery production. Additionally, it helps battery makers in a cooling EV market by finding new applications for retired batteries.

According to a recent announcement from B2U Storage Solutions, a California-based company, 500 electric vehicle batteries at the end of their automotive lives will soon be repurposed to provide energy storage for Texas' electric grid. The batteries, housed in 21 cabinets the size of shipping containers, will create a second life for the technology made from critical minerals, including lithium, nickel, and cobalt, for another eight years [1].

B2U Storage Solutions plans to deploy three more grid storage projects in Texas throughout the next year, totaling 100 megawatt hours across the state. This project will allow the company to sell power after cheaply charging it and provide ancillary services to the grid, or get paid by the grid operators to help curb frequency deviations and imbalances [1].

The global electric car fleet reached almost 58 million by the end of 2024, or about 4% of all cars on the road. As more EV batteries retire throughout the coming decade, the second-life EV battery market is forecast to grow into a $4.2 billion industry by 2035 [1].

Automotive companies like General Motors (GM) are also taking notice of the potential in used-battery powered storage ventures. GM has partnered with Redwood Materials, co-founded by Tesla's JB Straubel, to supply battery modules for energy storage systems targeting the growing power needs of artificial intelligence (AI) data centers. Redwood Materials is repurposing old EV batteries for microgrid projects, providing cheap energy storage for data centers [2].

The global data center market is experiencing growth due to the AI boom, with Goldman Sachs estimating a 165% increase in data center power demand by 2030. Redwood Materials has over a gigawatt-hour of reusable batteries and plans to scale up its projects [2].

These developments indicate a promising future for the repurposing of used EV batteries. As the technology advances and becomes more cost-effective, the opportunities for energy storage and grid stabilization will only increase. This strategy not only benefits the energy sector but also helps in conserving critical minerals and providing a new revenue stream for battery makers.

References:
[1] https://www.texastribune.org/2025/08/06/texas-ev-batteries-electricity-storage-power-grid/
[2] https://www.ainvest.com/news/tesla-founder-jb-straubel-redwood-materials-employs-ev-batteries-power-ai-data-centers-renewable-energy-2508/