CNU research explains how boosting consumer trust unlocks the $4 billion market for retired EV batteries

Electric vehicles (EVs) are gaining unprecedented popularity across the globe, with their number reaching 26 million in 2022 and expected to grow eightfold by the end of the decade. While EVs represent the next-generation technology for transport decarbonization, they are expected to lead to the issue of retired battery management. Notably, EV batteries are utilized only until their capacity reduces to 70-80%, meaning an average lifespan of 8-to-10 years. Therefore, the volume of retired batteries is going to rise rapidly by 2030.

To mitigate this problem, scientists have ingeniously come up with two strategies: recycling valuable elements like cobalt and nickel from old EV batteries and reusing the batteries in energy storage systems. The latter solution offers low electricity generation costs and emissions, making it a highly lucrative option. However, it faces challenges in public acceptance when compared with energy storage systems that utilize new batteries.

In an innovative study, a team of researchers from the Republic of Korea, including Hwarang Lee, an associate research fellow at the Korea Energy Economics Institute (KEEI), and Jongdae Kim, an assistant professor of marketing in the College of Business Administration, Chonnam National University, has explored the local as well as general acceptance of energy storage systems based on repurposed EV batteries. Their findings were made available online on 1 October 2025 and have been recently published in Volume 137 of the Journal of Energy Storage on 30 November 2025.

In this study, the researchers conducted a consumer survey, performed the confirmatory factor analysis to validate their measurement model, and subsequently developed a structural equation model to analyze the structure of consumer acceptance in terms of trust in companies, environmental identity, and innovativeness.

Dr. Lee says: “The key contribution of our work lies in distinguishing local from general acceptance of retired electric vehicle battery energy storage systems and empirically showing that perceived risks, perceived benefits, and affect operate differently by context. By separating these acceptance types, our research uncovers why people may support battery reuse at the societal level yet resist installations near their homes, offering a clearer understanding of Not In My BackYard dynamics in energy technology adoption.”

The present results can directly inform how companies and policymakers design public communication, safety verification, and installation strategies for retired electric vehicle battery energy storage systems projects. Dr. Kim points out: “Firms can emphasize transparent safety inspections to build trust and tailor messaging depending on whether installations are local or remote—thereby improving adoption outcomes. Implementing institute certification programs that exhibit low explosion risk may also bolster public confidence. Additionally, companies may benefit from targeting innovative consumers, who are more likely to adopt new technologies early and contribute to word-of-mouth effects.”

As retired electric vehicle batteries become a major resource for energy storage, this research may shape long-term policy frameworks that enhance public trust, standardize safety processes, and reduce social resistance to circular battery systems. “Over time, the resulting increase in acceptance can accelerate renewable integration, lower energy costs, and expand sustainable energy storage system deployment—making cleaner, more resilient energy infrastructures a visible part of everyday life,” concludes Dr. Kim.

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Reference
DOI: 10.1016/j.est.2025.118612

About the Institute
Chonnam National University (CNU), established in 1952 as Korea’s first national university, is a leading institution of higher learning located in Gwangju and South Jeolla Province. Building on its founding commitment to cultivating leaders of integrity and professional excellence, CNU contributes to national development and global progress through the pursuit of knowledge, ethical responsibility, and inclusive excellence. Guided by the core motto “Truth, Creativity, and Service,” the university advances research, education, and public engagement that strengthen resilient societies, foster sustainable development, and promote the well-being of future generations. As a trusted partner in the global community, CNU remains dedicated to addressing complex challenges in an increasingly interconnected world.

Website: https://global.jnu.ac.kr/jnumain_en.aspx

About the authors
Hwarang Lee earned his degree from Seoul National University and is currently an associate research fellow at the Korea Energy Economics Institute (KEEI). His primary research interests include energy policy, long-term energy outlooks, and energy modeling.

Jongdae Kim earned his Ph.D. from Seoul National University and currently works as an assistant professor of marketing in the College of Business Administration, Chonnam National University. His research interest lies in empirical modelling of consumer behavior, entertainment marketing, digital marketing, and corporate social responsibility.