A Policy Signal, Not Yet a Policy Scheme
Union Minister for Road Transport and Highways Nitin Gadkari has highlighted the possibility of repurposing used lithium-ion batteries from electric vehicles as a secondary source of electricity for homes.
The remarks were reported on 31 August 2026 following his inauguration of an electric-vehicle startup in Nagpur. The statement should be understood accurately: it represents a ministerial suggestion highlighting a potential second-life application and is not, by itself, a newly notified government programme, subsidy or technical standard for residential battery systems.
The comment is nevertheless relevant to India’s developing energy-storage market because it connects the country’s growing electric-mobility battery base with stationary energy-storage applications. As the number of electric vehicles increases, batteries that are no longer considered suitable for vehicle use could potentially retain useful capacity for other applications if their condition is properly assessed and the batteries are safely refurbished and integrated.
Residual Capacity Creates a Second-Life Opportunity
EV batteries operate under demanding conditions involving repeated charging and discharging, high power requirements, temperature variations and the weight and space constraints of vehicle applications. Battery performance changes over time as cells age, reducing available capacity and power capability.
NITI Aayog’s analysis of advanced chemistry cell energy storage has discussed the potential for EV batteries to be replaced when their capacity has declined to around 70–80% of the initial nameplate level. This should not be treated as a mandatory regulatory retirement threshold. Rather, it illustrates why a battery that is no longer optimal for vehicle operation may still have remaining useful capacity for another application.
Stationary storage can provide different operating conditions because the battery does not need to propel a vehicle or meet the same weight and packaging requirements. Depending on its condition, a retired battery could therefore potentially be used in applications with appropriately managed power and energy requirements.
However, not every retired EV battery will be suitable for reuse. Its state of health, cell balance, thermal history, insulation condition, battery-management-system data and previous operating conditions need to be assessed before a second-life application is considered.
India Already Has a Regulatory Framework for Refurbishment
India’s Battery Waste Management Rules, 2022, as amended, provide an existing regulatory framework covering the management of waste batteries and related activities.
The rules recognise refurbishment as a process that can include repairing, reconditioning and repurposing a used battery for its second life. They also establish extended producer responsibility requirements and provide a framework covering the collection, refurbishment and recycling of batteries.
This provides an important foundation for the development of a second-life battery market. Repurposing used EV batteries should remain connected to traceable battery-waste management rather than becoming an informal pathway that bypasses responsible end-of-life treatment.
For a second-life system, the battery’s condition and history become important parts of its value. Testing and refurbishment records can help determine whether a battery should be reused as a complete pack, repurposed at module level, further processed or sent directly for recycling.
Potential Stationary Applications
Second-life EV batteries could potentially serve several stationary applications, depending on their remaining performance and the requirements of the installation.
Possible uses include residential backup, solar self-consumption, telecommunications sites, small commercial systems and microgrids. These applications can be designed around the remaining energy and power capability of the battery rather than the original automotive specification.
However, integrating batteries from different vehicles presents additional engineering challenges. Packs can differ in voltage, chemistry, cooling arrangements, battery-management systems and mechanical design. Even batteries from the same vehicle model can have different ageing histories depending on how they were operated and charged.
Consequently, second-life deployment requires more than simply connecting a used EV battery to an inverter. The battery must be evaluated and appropriately matched with its power-conversion equipment, protection system, thermal-management arrangements and control architecture.
Safety and Bankability Remain Key Requirements
The economic case for second-life batteries comes from extracting additional value from an asset before its materials are ultimately recycled. But determining the remaining value of a used battery is more complicated than assessing a new battery.
A new battery generally comes with defined specifications, manufacturing information and warranty conditions. A retired EV battery may have a much longer and more varied operating history.
For this reason, reliable state-of-health assessment and safety validation will be important for second-life deployment. Systems also need appropriate monitoring, protection and thermal-management arrangements based on the battery chemistry and installation conditions.
Clear performance expectations and responsibility for failures will also be important as the market develops. Standardised testing and documentation could help users and system integrators compare batteries based on measurable remaining capability rather than simply their age or original vehicle application.
Battery History and Data Could Support the Market
Battery lifecycle information can also influence the economics of second-life applications.
Information about charging and discharging, temperature exposure, faults, capacity history and other operating conditions can help determine the condition of a retired battery. When such information is unavailable, refurbishers may have to rely more heavily on diagnostic testing and conservative assumptions.
Better access to reliable battery information could therefore support more consistent grading of used batteries. It could help determine whether a battery is appropriate for continued vehicle use, stationary reuse, module-level repurposing or direct recycling.
Standardised testing could further support the development of a market in which customers can compare second-life systems using measurable indicators such as remaining usable energy, power capability and safety condition.
Conclusion
Nitin Gadkari’s remarks bring attention to a potential connection between India’s expanding EV market and its growing requirement for stationary energy storage. Retired EV batteries could have a second application after automotive use, but their suitability will depend on their remaining condition and the requirements of the intended storage system.
India already has a regulatory framework for battery refurbishment and recycling through the Battery Waste Management Rules, 2022, as amended. The next stage for second-life deployment will depend on reliable battery assessment, traceable history, appropriate safety measures and clear end-of-life pathways.
For now, Gadkari’s comments should be viewed as a policy signal highlighting the potential of second-life EV batteries, rather than the announcement of a new government storage scheme. If the necessary testing, safety and market frameworks develop alongside EV adoption, repurposed batteries could become another route for extending the useful life of batteries before their final recycling.
Official Sources:
1. Times of India – 31 Aug 2026
Current report of Nitin Gadkari’s remarks in Nagpur suggesting that used EV lithium-ion batteries could be repurposed as a second source of power for homes.
https://timesofindia.indiatimes.com/city/nagpur/used-ev-batteries-can-power-homes-as-second-source-gadkari/articleshow/133636737.cms
2. NITI Aayog – Advanced Chemistry Cell Energy Storage report
Government policy study explaining second-life battery concepts, typical EV replacement at roughly 70-80% capacity and the link between EV and stationary storage value chains.
https://www.niti.gov.in/sites/default/files/2023-03/Need-for-ACC-Energy-Storage-in-India.pdf
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