they’re being unreasonable

No one is being 'unreasonable' you just started talking about something different.

I'd wager the bulk of them are hybrids where the batteries see a pretty aggressive charge/discharge cycle on a relatively small capacity (and therefore being relatively cheap to replace compared to a full electric). Of course then there are also full electrics where the owners get upgraded capacity or replacements due to degradation from use.

And importantly they aren't just recycling EV batteries here. They are using lithium-ion, nickel metal-hydride, and lead-acid batteries. So they are also buying up traditional ICE automotive batteries as well.

Also worth noting this project is a collaboration between Toyota, JERA, and local universities for use at JERA's facilities. JERA is a large battery reprocessing and recycling company so they are already getting second hand batteries into their facilities on a regular basis. This project is primarily about doing the design and engineering work necessary so that JERA can set up an array of these battery containers, get notified when a unit fails, and swap out the battery with one from their stock for recycling.