The EV battery aftermarket is emerging as a major global business as early electric vehicles age, factory warranties expire and owners seek affordable replacement options. The market could account for 10% to 20% of the total electric vehicle battery market within the next five years, creating new opportunities for independent repair shops, battery recyclers and energy storage providers.

As vehicles such as the first-generation Nissan Leaf and Renault Zoe face long-term battery degradation, replacing aging battery packs is becoming an increasingly important consideration for owners. Although battery replacement costs have long raised concerns about the affordability of electric vehicle ownership, the growing supply of used batteries is helping establish a secondary market for components that might otherwise go unused.

EV Battery Aftermarket Gains Momentum

The electric vehicle battery aftermarket is moving beyond its niche origins and developing into a substantial global industry. Industry estimates suggest the secondary market could represent 10% to 20% of the total EV battery market within the next five years.

The global EV aftermarket could grow to between $100 billion and $216 billion by the mid-2030s, with battery packs expected to be its largest and fastest-growing segment.

This expansion could reshape the way independent repair shops source and replace electric vehicle batteries. A fragmented supply chain currently contributes to lengthy service wait times, making access to replacement components a challenge for mechanics working on aging electric vehicles.

Independent mechanics are expected to encounter a diverse mix of battery systems from different manufacturers. A repair shop could dismantle a Tesla battery module in the morning and work on a Renault battery pack in the afternoon, reflecting the variety of vehicles and components entering the secondary market.

Because these mixed-brand batteries are difficult to combine into standardized batches for large-scale grid storage projects, many are expected to move directly into the independent repair market, where they can help keep older electric vehicles operating.

Automakers Add to the Supply of Used Batteries

Aging electric vehicles are not the only source of batteries entering the aftermarket. Automakers are also contributing to the growing supply after overestimating consumer demand and purchasing more battery packs than they could realistically use in production.

Some established manufacturers are now holding large inventories of unused batteries in warehouses. These stockpiles contain batteries that continue to degrade while sitting idle, creating a costly inventory problem for the industry.

The oversupply is costing automakers hundreds of millions of euros and contributing to pressure on sales floors as manufacturers attempt to clear stagnant electric vehicle inventory.

Where Retired EV Batteries Will Go Next

The growing supply of reusable batteries is expected to be divided among three main destinations: stationary energy storage, recycling and independent vehicle repair.

• Stationary energy storage: About 50% of the reusable supply is expected to be redirected to stationary grid energy storage, provided the battery modules are sufficiently uniform.
• Recycling: Roughly 30% is expected to go directly to recycling facilities for shredding.
• Vehicle repairs: The remaining supply is expected to reach independent mechanics for use in consumer vehicles.

The distribution will depend partly on whether battery modules meet the requirements for stationary storage applications. Batteries that cannot be grouped effectively for those projects may instead find a market through independent repair shops.

Cheaper Replacement Batteries Could Support Long-Term EV Ownership

The expanding supply of second-hand battery modules could provide electric vehicle owners with more replacement options as their cars age. Batteries removed from older vehicles and surplus inventory held by automakers could both become sources of components for the independent aftermarket.

Although electric vehicle maintenance remains complex, the emergence of a larger market for used battery modules could help reduce the financial burden of keeping older electric cars on the road.

As more batteries become available for repair, reuse and recycling, the EV battery aftermarket is developing into a new industry focused on extending battery use and creating additional value from components that might otherwise remain unused.