Second-life battery markets in Europe lag behind China by 5+ years. While UK operators debate technical feasibility, Chinese companies have already deployed over 2 million repurposed EV batteries into telecom infrastructure. This analysis breaks down four operational strategies Western battery reuse companies should adopt in 2025.

What can we learn from China’s second-life battery market?

Did you know the world’s largest user of second-life batteries is China Tower? Since 2018, they’ve stopped buying lead-acid batteries and now use standardised 48 V LFP EV packs as backup power across 31 provinces - more than 2 million towers in total.

Having lived in China for three years, I’ve tried to keep up with how the ecosystem is maturing - I really believe there’s a lot Western companies can learn from the operators in China. Here's what I think you need to know from my research:

1. Start small before you scale

   
   In China, many reuse operators don’t begin with ESS. They started low-speed electric vehicles (e.g., e-bikes, scooters) and backup power supplies (e.g., telecom towers). Why? Lower technical barriers: power and safety requirements are less demanding, enabling companies to learn, and crucially, providing an early revenue stream. These “bread-and-butter” projects then helped them upskill and fund later, larger energy-storage ambitions.
   
   

2. How chemistry shapes end-of-life: LFP for reuse, NMC/NCA for recycling

   
   

   Across China, operators increasingly treat chemistry as a practical filter for end-of-life decisions, articles are showing (Sources: 1, 2, 3). The rule of thumb isn’t absolute, but it holds up on the ground: LFP tends to flow into reuse, while NMC/NCA tends to flow into recycling.
   
   Why?
   LFP’s low material value makes recycling unattractive, but its safety, stability, and predictable aging make it ideal for second-life. NMC/NCA is the opposite - high recoverable metal value means recyclers can profitably process it even when SOH is still decent.
   
   This leads to a quiet norm: NMC/NCA exits to recycling earlier, while LFP is pushed further into reuse. When NMC does enter reuse, it must meet stricter thresholds (>80% SOH, <1.5× internal resistance) and is sold with short warranties and close monitoring.
   
   

3. Insurance as an enabler

   
   In Europe and the US, two of the biggest blockers for second-life ESS deployment are insurance and bankability. China tackled this head-on. The government encouraged insurers to underwrite second-life battery projects, offering subsidies or low-interest loans for certified systems.
   
   Policies typically cover thermal incidents and third-party liability, with warranty coverage such as: “1–2 years or 1,000 cycles to 70% residual capacity.” This enables second-life ESS to be attractive for cost-sensitive projects that can tolerate a bit more performance risk.
   
   

4. The “20–60–80%” guideline for maximising reuse value?
   
   

   Several Chinese sources outline a rough pattern for used batteries: 60–80% usable capacity → pack-level reuse in ESS; 20–60% → small applications (e.g. backup power); <20% → recycling (seen in a State Council explainer and broker research).
   
   The 20% mark reportedly reflects the point where the weakest cell drops below ~20% SOH, and reuse feasibility falls off a cliff. Investigations show that up to ~70% of retired batteries first pass through traders and small workshops, where the business model is built on ruthless cost-cutting and squeezing out every bit of residual value.
   
   
   Buying high-quality second-life battery supply is where ReBattery helps - verifying SOH thresholds before batteries enter reuse markets. Source available battery supply directly from suppliers here.
   
   
   
   Image source: France24