Barriers and Opportunities in Deploying Second-Life Electric Vehicle Batteries in Battery Energy Storage Systems in Sweden

Sammanfattning

The rapid growth of the electric vehicle (EV) market in Sweden has increased the number of lithium-ion batteries reaching the end of their automotive service life. Although these batteries are typically retired at 70%–80% of their original capacity, they remain suitable for stationary energy storage applications. Reusing retired EV batteries in Second-Life Battery Energy Storage Systems (SLBESS) supports circular economy principles by extending battery lifecycle and reducing resource waste. This study investigates the barriers and opportunities to deploying SLBESS within the Swedish energy landscape using the PESTEL (Political, Economic, Social, Technological, Environmental, Legal) framework. Qualitative data were collected through semi-structured interviews with nine industry experts from the Swedish BESS ecosystem. The empirical data were analyzed through template analysis. The findings reveal that SLBESS deployment in Sweden is influenced by a complex interaction of technological, economic, political, social, legal, and environmental factors. Technological and economic barriers emerged as the most significant challenges, including uncertainty about battery degradation, integration of heterogeneous battery systems, limited access to original equipment manufacturer (OEM) data, high refurbishment costs, and declining prices of first-life batteries. Regulatory uncertainty, fragmented stakeholder collaboration, and low public awareness were also identified as barriers slowing market development. At the same time, the study identifies several opportunities, including the increasing availability of end-of-life (EoL) EV batteries, emerging battery diagnostic technologies, circular business models, and the ability of SLBESS to support grid flexibility, renewable energy integration, and ancillary services. The findings suggest that although SLBESS is unlikely to replace first-life battery systems in the near future, it has strong potential to become a complementary solution for stationary energy storage applications and to contribute to Sweden’s energy transition and circular economy objectives.