The Emissions Impact of Repurposed EV Battery Packs in Residential Settings

Mitull Batraa CEO and CO-founder of Udaan E Vehicles

The popularity of plug-in electric vehicles (PEVs) has taken off, thanks to better batteries, lower costs, and strong policy support. However, as electric mobility becomes more mainstream, a crucial question arises, what happens to these batteries when they are no longer usable? With 1.2 million electric vehicle batteries predicted to be decommissioned worldwide by 2030 (according to the International Council on Clean Transportation)—and projections suggesting this could rise to 50 million by 2050—there is significant potential for repurposing EV batteries into home energy storage systems.

In 2023, the global battery energy storage market was valued at $18.20 billion, and it is expected to grow to $25.02 billion by 2024, with an estimated reach of $114.05 billion by 2032. This growth underscores the increasing demand for battery energy storage systems (BESS), particularly in households seeking energy self-sufficiency and a reduced carbon footprint.

Role of Repurposed Batteries in Reducing Carbon Emissions

Electric vehicles play an important role in reducing carbon emissions from the transportation sector. However, the lifecycle of a battery does not end when it is no longer suitable for vehicular use. Repurposing these batteries can provide substantial benefits, particularly in residential settings where they can be integrated into home energy systems to optimize energy usage and reduce reliance on fossil fuels.

In countries like India, where over 65% of the population is under 35, there is a strong potential market for residential energy storage. As younger generations become more conscious of sustainability, the appeal of home energy storage solutions derived from decommissioned EV batteries could accelerate adoption.

The potential impact of these repurposed batteries on reducing carbon emissions is significant. By storing excess energy from renewable sources—such as solar panels—homeowners can decrease their dependence on grid electricity, especially during peak demand hours when fossil fuel use is higher. According to the International Council on Clean Transportation, efficiently recycling and reusing just half of the retired electric vehicle batteries could lead to a 3% reduction in the annual demand for new lithium, cobalt, nickel, and manganese mining by 2030. This reduction will only grow more substantial by 2050, potentially reaching a decrease of 28%.

Challenge of Battery Waste Management

While the potential for repurposing retired EV batteries is clear, challenges remain in battery waste management and recycling. India’s current Battery Waste Management Rules of 2022 need revision to effectively support the extraction of critical minerals through recycling. With Niti Aayog estimating that 46% of the 128 GWh of lithium-ion batteries available for recycling by 2030 will come from electric vehicles, a structured approach to recycling will be crucial.

By revamping waste management policies, India can not only secure material for its growing battery manufacturing industry but also mitigate environmental hazards associated with e-waste. This is especially pertinent in light of the country’s ambitious electrification program and the urgency to achieve net-zero emissions. Effective recycling processes will reduce the environmental impact of new mining operations and help build a sustainable battery supply chain.

Economic and Environmental Impacts

Repurposing EV batteries for residential energy storage has substantial economic implications. The savings achieved through reduced energy bills and the potential income from selling excess stored energy back to the grid can make these systems financially attractive to homeowners. As the battery storage market grows, competition may further lower costs, making energy storage systems more accessible.

Moreover, the transition to a circular economy—where materials are reused rather than discarded—can help build resilience in the energy sector. By ensuring that retired batteries are not simply discarded but instead repurposed or recycled, stakeholders can address both economic and environmental challenges, leading to more sustainable development.

A Growing Market

The cumulative potential of lithium-ion batteries in India during the period from 2022 to 2030 is projected to be around 600 GWh, as noted by Niti Aayog. With a significant portion of this potential deriving from the electric vehicle sector, the market for repurposed batteries could see substantial growth.

As the interest in residential energy storage rises, aligning with global trends and local needs becomes essential. The growth in battery energy storage is not merely a technical innovation but also a social movement towards sustainability. The projected compound annual growth rate (CAGR) of 20.88% in the battery energy storage market (as per The International Council on Clean Transportation) emphasizes the importance of adapting energy systems to reflect these changes.

Repurposing electric vehicle batteries can enhance home energy storage. This helps people become more energy independent, lowers carbon footprints, and supports sustainability. By managing battery waste and promoting a circular economy, India and other countries can create cleaner energy solutions.