Millions of electric car batteries will retire in the coming years with plenty of useful life left. Many could store solar power for homes, support the grid or back up factories. Yet in much of Europe, the rules still treat these batteries as waste rather than as valuable assets. A new CIRCUBATT study shows where second life battery policy falls short, and which fixes would make the biggest difference.
Our public Policy Recommendation Report, led by the University of Greenwich, reviewed the policies of 34 European economies between 2006 and 2025. That includes all 27 EU Member States, several EEA countries and the UK. The team scored each country on 25 policy indicators and built a single index of how ready its rules are for second life batteries.
Where second life battery policy stands today
The good news is that Europe has come a long way. Between 2006 and 2015, the EU’s policy maturity score barely moved, staying below 0.9 out of 3. By 2025, it had reached 2.02. The biggest jump came with the EU Batteries Regulation, which introduced the battery passport and new rules for repurposing.
Progress, however, is uneven. Only seven countries stand out as frontrunners: Germany, France, Norway, Austria, Slovenia, Spain and Finland. The other 27 still have significant gaps. Importantly, the score measures how well policies are designed, not yet how well they work in practice.
Four bottlenecks holding second life back
The study identifies four problems that keep repurposed batteries off the market. First, many countries still classify retired batteries as hazardous waste. This triggers heavy paperwork, even when a battery is perfectly healthy and ready for a new job.
Second, buyers rarely trust what they cannot see. Without reliable data on a battery’s state of health, its remaining value is hard to judge. Third, many countries have no clear safety testing or certification for second life batteries, which makes them harder to insure. Finally, demand signals are missing. Without public procurement rules or financial incentives, repurposed batteries struggle to compete with new ones.
Five fixes that close more than half the gap
The most striking finding is how much a few targeted actions could achieve. According to the analysis, five EU level measures would close 53.7% of Europe’s overall policy gap.
The single biggest gain would come from modern safety and building codes. The report recommends a harmonised European standard for installing second life battery storage, which national building authorities could then adopt. Today, installers often face different and unclear rules in every country.
Transport rules come next. Under European rules for moving dangerous goods by road, used lithium batteries usually count as hazardous cargo. The report suggests using certified battery passport data to show when a battery is healthy, so that functional batteries can travel under lighter rules.
The remaining three fixes target permitting, skills and innovation. The authors propose treating battery repurposing sites as strategic projects under the Net Zero Industry Act, which would speed up approvals. They also call for EU funding for battery diagnostics training, and for a faster patent route for circular battery technologies.
Different countries need different help
The study also shows that a single, one size fits all EU directive will not be enough. Instead, it groups the less advanced countries into two clusters, each with its own priorities.
For the 14 moderately advanced countries, the main task is to create demand. The report recommends fast tracking EU rules on green public procurement, setting sustainability criteria in public tenders and offering targeted incentives. It points to existing examples, such as Austria’s grant of €150 per kWh for battery storage.
For the 13 countries furthest behind, the focus is on basic safeguards. First, sellers should have to disclose a battery’s state of health, cycle history and original capacity before any resale. Second, second life batteries should pass dedicated safety checks rather than generic electrical tests. Finally, the report calls for clear rules on access to battery management system data before the battery passport becomes mandatory in February 2027. Without that access, manufacturers can lock others out of the information needed to reuse a battery.
What this means for second life battery policy in Europe
The message for policymakers is encouraging. Europe does not need to rewrite its rules from scratch. A small number of well chosen actions, at EU and national level, could unlock a large share of the market. The authors call this a “return on compliance”.
CIRCUBATT will build on this work in a second phase, which will measure the real impact of policy interventions. In the meantime, our End of Life BaaS Business Model Handbook explores the business side of the same question. To understand the service model behind it, read our plain language guide to Battery as a Service, or visit our frequently asked questions.