The aftermarket for used electric vehicle batteries could account for 10% to 20% of the total EV battery market within five years, according to a report cited by Automotive News. Supply is increasing as owners begin retiring vehicles from the first generation of mass-produced EVs, with retired batteries finding applications in energy storage and recycling.

The report also points to battery oversupply putting downward pressure on prices. Together, these developments suggest that the growing availability of used batteries could expand opportunities for reuse while creating tougher pricing conditions for businesses handling them.

The two destinations for retired batteries have different implications. Energy storage offers a route to further use, while recycling offers a route to material recovery. A larger supply of retired batteries could support both activities, but supply growth alone does not establish how much volume each route will attract or how profitable it will become.

Lower battery prices could make purchasing used batteries more attractive. For businesses supplying them, however, falling prices could also reduce resale revenue. If competing battery options become cheaper, the commercial appeal of a used battery will depend on whether its purchase price and the costs of preparing it for further use remain competitive.

The projected 10% to 20% share should be read as a forecast, rather than an established market outcome. It also does not imply an equivalent share for energy storage or recycling individually. The clearest signal is that retired EV batteries are becoming a more substantial source of supply; the balance between reuse, material recovery and price pressure will help determine how that supply translates into business activity over the next five years.