Abstract Capacity sorting is the primary prerequisite for the stepwise utilization of decommissioned power batteries. This study proposes an improved relative integral capacity-K-means clustering (RIC-KMC) method for preliminary sorting of decommissioned power battery capacity. Firstly, according to the electrochemical aging characteristics of decommissioned power batteries, combined with the ampere-time integration algorithm, a new lossless extraction method of the capacity characteristics of Lithium-ion batteries based on the segment voltage is proposed. Second, to minimize the interference of environmental factors and sampling errors on the charging capacity, the relative amount of charging capacity is introduced. Finally, to complete the capacity sorting before the ladder utilization, an improved RIC-KMC method is proposed, which combines the electrochemical aging feature values of decommissioned power batteries extracted from the segment voltage charging capacity with the K-means clustering algorithm. Using three sets of battery charging and discharging data to validate the sorting algorithm, the capacity sorting errors are reduced by 0.926%, 12.381%, and 10.185%, respectively, which verification the validity of the proposed RIC-KMC method. This study provides a new solution for capacity pre-sorting of decommissioned power batteries for stepwise utilization.