Abstract: As the Chinese government put forward the strategy of peaking its carbon dioxide emissions before 2030 and achieving its carbon neutrality before 2060, the renewable energies have gradually become the main power supply. Energy storage technology, as the major means to suppress the energy fluctuations and improve the absorption capacities, has attracted much attention. However, owing to the economic constraints, it is difficult for the renewable energy to achieve a large scale of promotion. Due to the extension of the industrial chain and the utilization of the full period of their life span, it is expected to be an effective means for the retired power batteries to solve this dilemma. According to the holdings of the new energy vehicles, about 300 000 tons of retired power batteries need proper disposition every year. Reasonable screening and clustering is the effective means to quickly absorb the large-scale retired power batteries. However, with different battery types, various battery states and no industrial sorting methods at present, it needs to study on the sorting methods under different application scenarios. In this paper, the policy deployment of the retired battery cascading utilization under the dual-carbon target is firstly reviewed, and the functions of the typical cascading demonstration projects are analyzed. Secondly, the clustering algorithms and evaluation methods for retired power batteries are compared and analyzed, and their advantages and disadvantages, the ranges of application, and the assessment criteria are clarified. Then, an evaluation system for the scenarios applicable for the retired batteries is established, and the methods to improve the matching degree of scenarios for sorting the retired batteries are analyzed. Finally, the application of retired battery selection is summarized based on the dual-carbon strategic objectives in China.