Definition and Core Value
Power battery echelon utilization refers to the secondary application of retired new energy vehicle batteries. After strict testing, screening and restructuring, batteries that no longer meet automotive power standards are reused in low-demand scenarios. It is a key part of the new energy battery recycling industry chain.
Electric vehicle batteries are generally retired when their capacity drops below 80% of the original rating. Most retired batteries still retain 70% to 80% of effective capacity. Though incapable of supporting vehicle operation, they are fully functional for energy storage, peak shaving and standby power supply scenarios, maximizing battery resource value.
Current Challenges of Echelon Utilization
The industry faces prominent technical and structural bottlenecks. Retired batteries from different manufacturers and models have inconsistent specifications and poor consistency. Diverse service conditions also lead to huge differences in battery internal resistance and remaining life, making accurate life assessment difficult and time-consuming.
These problems further reduce the reliability of restructured battery systems. Complex detection, screening and repackaging processes raise operating costs. As new energy storage batteries become more cost-effective, the price advantage of echelon batteries is gradually weakened, limiting industrial promotion.
Application Status and Industry Prospect
At present, echelon battery utilization has achieved mature application in communication base station standby power systems. However, its large-scale application in grid energy storage and industrial and commercial energy storage is still progressing slowly due to reliability and safety constraints.
The industry is ushering in rapid development driven by growing market supply. The volume of retired power batteries exceeded 500,000 tons in 2025. The continuous increase of retired batteries is accelerating the improvement of the echelon utilization industrial chain, bringing broad development potential for low-cost energy storage and green resource recycling.