Abstract: As the core component of new energy vehicles, lithium-ion batteries (LIBs) have a service life of 5～8 years, while LIBs that have been retired from automobiles still have 70%～80% of their capacity and still have practical value. Studying the cascade utilization of retired LIBs is helpful to prolong the service life of batteries and maximize the utilization of resources. The echelon utilization of retired LIBs is systematically reviewed in this paper. Firstly, the policies, standards and practical application cases of echelon utilization of retired LIBs is analyzed. Secondly, the challenges of echelon utilization are summarized. Then, the research progress of two key technologies of retired LIBs-rapid prediction of residual capacity and consistent sorting is reviewed. Finally, the development trend of echelon utilization of retired LIBs is propsed.