The large-scale retirement of electric vehicle traction batteries poses a huge challenge to environmental protection and resource recovery since the batteries are usually replaced well before their end of life. Direct disposal or material recycling of retired batteries does not achieve their maximum economic value. Thus, the second-life use of EV batteries has become the most economical and environmentally friendly solution. However, there are still many issues facing second-life batteries (SLBs). To better understand the current research status, this article reviews the research progress of second-life lithium-ion batteries for stationary energy storage applications, including battery aging mechanisms, repurposing, modeling, battery management, and optimal sizing. Energy management strategies are reviewed to maximize the economic benefits for SLBs, and the less-demanding applications of SLBs are presented. The technical challenges and future development trends of battery reusing technologies are also discussed. Finally, the conclusions and relevant recommendations for future studies are summarized.