How Enhancing Consumer Trust Can Unlock the $4 Billion Market for Retired Electric Vehicle Batteries

Unleashing Value from Retired EV Batteries

Electric vehicles (EVs) have witnessed remarkable growth, with the global count reaching 26 million units in 2022. This figure is expected to surge eightfold by the end of the decade, signifying a monumental transition towards greener transportation technologies. However, this rapid adoption also poses pressing issues related to the management of retired EV batteries. These batteries typically serve their full potential until their capacity dwindles to about 70-80%, resulting in an expected lifespan ranging from 8 to 10 years. Given this timeframe, we can anticipate a significant increase in the volume of retired batteries by 2030.

To address this challenge, researchers have proposed innovative solutions that focus on both recycling valuable elements like cobalt and nickel from old batteries and reusing the exhausted batteries in energy storage systems. The latter not only offers cost advantages in electricity generation but also benefits from lower emissions, making it an attractive option for energy management. Yet, despite the financial and environmental advantages, the public often exhibits resistance towards adopting energy storage systems that repurpose these used batteries compared to systems utilizing brand-new batteries.

In a groundbreaking study, researchers from South Korea, including Hwarang Lee and Jongdae Kim from Chonnam National University, investigated both local and general acceptance of energy storage systems leveraging repurposed EV batteries. Their findings, published in the Journal of Energy Storage, shine a light on consumer behavior regarding this new technology. By conducting an extensive survey and developing a structural equation model, the team analyzed how factors such as trust in companies, environmental identity, and innovativeness influence consumer acceptance.

Dr. Lee emphasized the importance of distinguishing between local and general acceptance. He noted that perceived risks and benefits can operate differently depending on the context. Surprisingly, individuals may support the broader societal implementation of battery reuse while opposing installations in their immediate vicinity—often referred to as