Secondary Use of Retired Lithium-Ion Traction Batteries: A Review of Health Assessment, Interface Technology, and Supply Chain Management

Lithium-ion batteries (LIBs) dominate energy storage for electric vehicles (EVs) due to their high energy density, long cycle life, and low self-discharge. However, high costs, complex manufacturing, and the requirement for advanced battery management systems (BMSs) constrain their broader deployment. Therefore, extending the utility of LIBs through reuse is essential for economic and environmental sustainability. Retired EV batteries with 70–80% state-of-health (SOH) can be repurposed in battery energy storage systems (BESSs) to support power grids. Effective reuse depends on accurate and rapid assessment of SOH and state-of-safety (SOS), which relies on precise state-of-charge (SOC) detection, particularly for aged LIBs with elevated thermal and electrochemical risks. This review systematically surveys SOC, SOH, and SOS detection methods for second-life LIBs, covering model-based, data-driven, and hybrid approaches, and highlights strategies for a fast and reliable evaluation. It further examines power electronics topologies and control strategies for integrating second-life LIBs into power grids, focusing on safety, efficiency, and operational performance. Finally, it analyzes key factors within the closed-loop supply chain, particularly reverse logistics, and provides guidance on enhancing adoption and supporting the establishment of circular battery ecosystems. This review serves as a comprehensive resource for researchers, industry stakeholders, and policymakers aiming to optimize second-life utilization of traction LIBs.