Circular Battery Economies

When electric vehicles reach the end of their life, their batteries still have economic value and a range of possible uses. For example, a battery may still be able to support solar and wind generation by providing electricity storage. Such ‘second-life’ schemes are also preferable to direct recycling because they enable further recovery of the significant economic value and carbon embedded in the battery. This is the vision behind a circular battery economy, which the Oxford Martin Programme on Circular Battery Economies seeks to put into practice.

The idea of redeploying used electric vehicle batteries is particularly attractive in the Global South, because energy storage is vital in areas where power grid infrastructure is weak or even non-existent. However, this opportunity has not been realised because of uncertainties around technical performance, certification, safety and performance. Indeed, where batteries have been redeployed, often the poor matchmaking between expected and actual performance has made them unfit for purpose, resulting in the batteries becoming a liability for the communities they were intended to serve, and undermining the energy justice of the endeavour.

The need to establish a sustainable and equitable circular battery economy is therefore a huge opportunity and a major global challenge. The Oxford Martin Programme on Circular Battery Economies will examine whether and how ‘second-life’ battery redeployment can be technically viable, as well as economically, socially, and environmentally beneficial, particularly to those living in under-served Global South communities. Its research will be critical to driving support for widespread adoption of electric transport globally, enabling a sustainable circular battery economy, and promoting equitable access to clean energy solutions that benefit society.

An interdisciplinary team of researchers will firstly try to understand the growing market for second-life batteries and their potential value, particularly for the Global South. Secondly, they will also examine how much a battery’s health degrades beyond their usual lifespan and establish frameworks to rigorously test the viability of reusing old batteries, including for their recertification. And thirdly, there will be a focus on understanding how policies, institutions, and regulations influence the uptake for second-life batteries in Global South countries and to position these batteries within their wider energy transition goals.