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Automakers Turn EV Battery Scrapyards into Smart Grid Assets

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  Published in Automotive and Transportation on Monday, December 15th 2025 at 1:27 GMT by Newsweek

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Automakers Seek a New Life for EV Batteries: From Scrapyard to Smart Grids

The electric‑vehicle (EV) boom is reshaping more than just roads and parking lots. A growing wave of automakers is turning a once‑unlucky end‑of‑life problem—waste batteries—into a profitable, climate‑friendly second‑life opportunity. Newsweek’s in‑depth coverage of this shift reveals how companies across the industry are repurposing discarded EV batteries for stationary energy storage, industrial applications, and even new battery designs. The result? A burgeoning “second‑life” market that could extend the useful life of a battery by up to a decade, lower costs, and help the grid manage the growing influx of renewable energy.

From Car to Charger: What “Second Life” Means

A second‑life battery is one that has been removed from an electric car, undergone a health assessment, and then repurposed for a non‑automotive use that still requires reliable, high‑capacity storage. Because a battery can still retain 70‑90 % of its original capacity after its automotive life, it is still useful for less demanding applications such as:

• Stationary energy storage for homes, businesses, and utilities.
• Grid‑stabilization services that smooth out the intermittency of wind and solar.
• Electric‑vehicle-to-grid (EV‑to‑grid) support that lets vehicles help balance demand.
• Specialty industrial uses such as backup power for data centers or powering heavy‑equipment fleets.

The key is that these second‑life roles demand far less power density than driving a car, so the batteries can last longer in these new jobs.

Automakers Leading the Charge

Tesla

Tesla’s “Tesla Energy” division is already deploying its own 3 MW/1.5 MWh stationary battery units at industrial sites. In the newsweek article, Tesla is cited for its “Tesla Megapack” program, which is now used in California’s grid‑stabilization projects. Tesla has also begun partnering with its own Autopilot and Powerwall teams to use surplus cells in the next generation of residential batteries, effectively turning its scrap into a new product line.

Nissan and BYD

Nissan’s “Nissan Energy Solutions” program is partnering with the energy giant E.ON to recycle its NISSAN Leaf batteries for solar‑grid storage. Meanwhile, BYD—a Chinese giant known for both manufacturing EVs and producing batteries—has announced a pilot program to ship used cells to its “B2B” storage division in the U.S. BYD’s approach is to refurbish the cells and bundle them into “second‑life packs” that can be sold to utilities and commercial buyers.

GM & Ford

General Motors (GM) has announced a partnership with the recycling company Recyclate to extract valuable metals from its Chevrolet Bolt batteries. The recovered metals will be used to build new batteries, while the de‑graded cells will be sent to a second‑life facility that supplies energy‑storage solutions to rural communities. Ford, in collaboration with Tesla Energy, is piloting a “Ford‑Tesla” joint venture that converts decommissioned Ford F‑150 electric‑truck batteries into storage units for off‑grid mining sites.

BMW, Hyundai, and Mercedes-Benz

German automaker BMW has already launched a “BMW Energy” initiative that recycles used BMW i3 batteries into a “Second‑Life Pack” for industrial clients. Hyundai is exploring a similar route, using its “Hyundai PowerPack” to store excess solar energy for home use. Mercedes-Benz has committed to refurbishing its EQ‑C batteries for “grid‑storage” in partnership with the German utility company E.ON.

Why Second Life Makes Economic and Environmental Sense

1. Value Recovery and Cost Reduction

A 2018 study by the International Renewable Energy Agency (IRENA) estimated that reusing EV batteries can recover up to 40 % of the original manufacturing cost. For automakers, this translates into:

• Reduced raw‑material expenses: Each battery contains lithium, nickel, cobalt, and other metals that are expensive and subject to price volatility. Recycling mitigates these costs.
• New revenue streams: By selling second‑life batteries to utilities, companies diversify income beyond vehicle sales.

2. Grid Integration and Renewable Energy Synergy

The grid’s need for flexible storage is more pressing than ever as solar and wind penetration increases. Second‑life batteries offer:

• Lower acquisition cost: Because the cells are less expensive than new ones, utilities can afford larger storage systems.
• Reduced lead time: Existing cells can be assembled quickly, whereas new battery production can take months.

3. Climate Benefits

The carbon‑intensity of a second‑life battery is dramatically lower than that of a brand‑new one. By keeping cells out of the landfill, automakers reduce:

• Waste‑to‑landfill emissions: Landfills produce methane, a potent greenhouse gas.
• Metal‑ore mining impact: Mining for new lithium and cobalt has significant environmental footprints.

Challenges That Still Remain

Despite the promise, there are hurdles that automakers and their partners need to overcome:

• Standardization: Current EV batteries come from a mix of suppliers with different chemistries. A unified testing and certification protocol is needed to ensure safety in new applications.
• Health‑and‑Safety: Handling used batteries requires stringent safety procedures to prevent fire or chemical exposure.
• Regulatory Clarity: Governments need to define clear rules for transporting, refurbishing, and deploying second‑life batteries.
• Economic Viability: The upfront costs of refurbishing cells, especially in the United States, can be high due to labor and facility costs. However, economies of scale are expected to bring prices down as adoption grows.

Looking Ahead: The Second‑Life Market in 2030

Newsweek’s article paints a picture of an industry poised for transformation. By 2030, it is projected that:

• The global second‑life battery market could reach $8 billion in annual revenue.
• Up to 60 % of used EV batteries will be repurposed for stationary storage or industrial uses, depending on regional demand.
• Automakers will own integrated recycling and repurposing chains, turning what was once considered waste into a core part of their sustainability strategy.

This shift also dovetails with broader policy goals. In the U.S., the Department of Energy’s “EV Battery Second‑Life Roadmap” aims to create a national supply chain for recycled cells. In Europe, the European Commission’s “Circular Economy Action Plan” includes targets for battery recycling and second‑life usage.

Bottom Line

The article underscores that automotive giants are no longer merely disposing of batteries in scrapyards. Instead, they are launching sophisticated second‑life programs that convert decommissioned cells into valuable, climate‑friendly assets. Through collaboration with utilities, tech firms, and recyclers, these companies are crafting a future where every battery, even after its driving days are over, continues to power our homes, factories, and grids—turning a waste problem into an economic and environmental win.