As over 100,000 electric vehicles retire in the US this year, their lithium-ion batteries are finding second lives in energy storage systems (ESS) rather than landfills.

Many retain over 50% capacity, making them ideal for grid reliability and renewable integration. Redwood Materials, led by former Tesla CTO JB Straubel, repurposes 20 GWh of battery capacity annually.

ESS built from these batteries stabilise power grids and support solar and wind infrastructure, especially in remote regions. While recycling is still dominant, the second-life battery market is projected to reach $5.2 billion by 2035, offering a sustainable alternative to disposal.