Škoda Auto has implemented a strategic approach to extend the lifecycle of its electric vehicle (EV) batteries by repurposing them for stationary energy storage applications. This initiative not only reduces environmental impact but also offers economic benefits by deferring recycling costs and creating new revenue streams.​

The increasing adoption of EVs leads to a growing number of batteries reaching the end of their automotive life. Premature recycling of these batteries can result in unnecessary environmental impact and economic loss, especially when they still possess significant residual capacity suitable for less demanding applications

Škoda Auto assesses and sorts used batteries, particularly those from development and quality assurance processes, based on stringent criteria to determine their suitability for second-life applications. These batteries are then repurposed for stationary energy storage systems, such as powering charging stations or providing energy for dealerships, especially in areas with limited grid infrastructure. This approach extends the batteries' useful life by up to 15 years, after which they are recycled to recover valuable materials.​

- Extended battery life by up to 15 years in second-life applications.

- Reduction in carbon footprint due to deferred recycling and efficient use of existing resources.

- Creation of new revenue streams through partnerships with energy storage integrators and utility companies.

- Enhanced sustainability profile for Škoda Auto and its stakeholders.​

Pilot projects have demonstrated that battery capacity in stationary systems decreases by only about 2% per year. Škoda Auto's Aftersales department manages the recycling and secondary use of these batteries, ensuring a closed-loop system that aligns with circular economy principles.

The information in this case study has been adapted from an in-depth Circular Business Case by the EU-funded BatteReverse initiative. Read it here.