Im not 100% sure how the batteries are constructed from all of the cells (and I know it depends on the model), but the re-using process can work a lot better than just pulling out the battery and popping it down. EV batteries are in the range of hundreds of volts, but the cells themselves are about 4 volts. It's my understanding that the battery as a whole doesn't uniformly degrade, but you might have individual cells that degrade. If 1 cell in a chain of 10 goes bad, that chain can be made off limits to the battery, so you still technically have 9/10 cells that work fine.

The way a lot of people reuse/recycle/refurb (not sure what the right terminology is in this instance) EV batteries is to test each of the cells themselves, and get rid of the duds, and keep the decent cells. Tesla, for example, all used to use 18650 cells (and I think some models still do), which is the same exact cell that's in decent name-brand cordless power tools.

When you aren't required to keep weight, space, and extra circuitry to a minimum, you can really design a system that squeezes every last drop of usefulness out of those cells before they need to be melted down and remade.