Consumer preferences for second-life electric vehicle batteries across multiple applications

Abstract

The growing shift from internal combustion engine vehicles to battery electric vehicles (BEVs) is pivotal for reducing CO₂ emissions, but it also raises new environmental and resource concerns. Consequently, effective recycling and reuse strategies for BEV batteries are increasingly critical. While research on BEV adoption has expanded, studies on consumer preferences for battery reuse applications remain limited, particularly research comparing valuations across different contexts and examining psychological drivers of acceptance. This study aims to analyze consumer preferences for reused BEV batteries in two applications—vehicle replacement parts and residential stationary storage—by conducting a discrete choice experiment within a questionnaire survey of BEV users in Japan. Results revealed that cost savings and lifetime losses are more influential than carbon savings, and preferences differ significantly across applications. Notably, consumers showed substantially higher willingness to pay to avoid battery lifetime losses in residential stationary storage (5724 JPY/year/kWh) than in vehicle settings (1470 JPY/year/kWh). These findings suggest an application-specific approach: cost competitiveness is crucial for vehicle use, whereas performance and environmental benefits can justify premium pricing in residential storage. Furthermore, perceived usefulness moderately shifts cost and durability sensitivities, highlighting the importance of clear communication about reused batteries’ value. Overall, this study provides new insights into how consumer preferences vary by application and underscores the need for differentiated business and policy strategies to foster battery reuse and advance the circular economy.