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Fast capacity estimation for retired batteries is necessary when batteries are recycled for echelon utilization. Here, a fast capacity estimation method is proposed for retired LiFePO4 battery. First, a full survey of battery pack and cells degradation after a long period of service is studied. Then the filtered ICA is used to study degradation variation phenomenon of retired batteries, the relationship between IC curve feature and remaining capacity was studied. Finally, a fast capacity estimation using incremental capacity and Gaussian process regression is proposed. Our results show high efficiency and accuracy of the proposed method.