The global EV battery reuse market share is anticipated to gain considerable traction over the forecast spell, given the mounting prices of constituent metals such as cobalt. Furthermore, the rising focus on minimizing mass disposal is anticipated to boost the reuse of EV batteries.
Extreme Vehicle Battery Technologies Corp. (CSE:ACDC) is a Canadian company that is focused on developing and commercializing battery recycling facilities through its licensed AI and blockchain based battery management system patents. Newly listed on the CSE, the company has experienced significant interest in the Canadian markets, drawing over 10 million shares traded in just 3 days.
The rising deployment of electric vehicles worldwide has significantly driven up the number of EV batteries available for refurbishment. This shift towards EVs is a result of fluctuating fossil fuel costs and is a major contributing factor to EV battery reuse market development over the years.
Based on estimates from a Global Market Insights, Inc. report, the global EV battery reuse market size is projected to surpass total installation of more than 16 GWh by 2026.
Higher replacement of batteries will drive EV battery reuse market expansion
Based on source, the battery electric vehicle segment is poised to amass considerable gains over the estimated timeline, owing to the rising replacement of batteries.
Harsh operational temperatures, fluctuating discharge rates and multiple partial cycles each year are among the major factors that influence battery performance in electric vehicles. Consequently, more batteries which do not meet the standards of performance are being utilized for refurbishment, which is in turn fostering EV battery reuse market growth.
Additionally, increasingly stringent regulations aimed at minimizing mass battery disposals, alongside burgeoning demand for EV batteries across stationary storage applications will also assert a positive influence on industry trends over the projected timeframe.
High refurbishment complexities and falling battery costs may hamper industry development
Variations in electrode chemistry, format and size of battery pack, along with volume fragmentation and lack of standardization in battery designs can significantly increase the complexity of battery recycling, in turn posing a roadblock to the EV battery reuse market outlook.
Also, the decreasing costs for new batteries can hamper industry growth, owing to the diminishing of the cost differential between new and used batteries, as the remanufacturing cost rate of decline lags the rate of decline in the production of new batteries.
Burgeoning interest in expanding base stations sites to serve as a key trend for industry growth
The deployment of second-life EV batteries is expected to witness substantial growth in the base station application, as the investment interest in global communication tower site development rises. In Europe, the number of wireless towers in anticipated to reach a commendable level by 2025. This is evident from strong initiatives taken by European authorities to boost the presence of communication towers in the region, including various Build-to-Suit projects being undertaken across Europe, including a point-of-presence roll-out of 20,000 in France, as well as efforts by German telecommunications organization to add over 8,000 sites by the year 2022.
Base stations require robust energy storage systems, in order to ensure smoother and more streamlined operations, for which second-life EV batteries are considered suitable solutions. This is anticipated to augment EV battery reuse market penetration in the segment over the foreseeable future.
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