Aiming at the different attenuation degree and voltage of retired batteries in battery energy storage bank, a multi-paralleled retired battery-based energy storage bank and its control method under a new topology suitable for DC distribution network is proposed. Firstly, the droop characteristic of DC distribution network under multi-paralleled retired battery-based energy storage bank with droop control is analyzed. Then, a secondary voltage recovery control method based on discrete consensus algorithm is proposed to solve the bus voltage deviation caused by droop control and line resistance. Finally, the multiple retired battery-based energy storage banks are reorganized and distributed according to the global average state of health of retired batteries obtained by the discrete consensus algorithm. Single retired battery with good state of health (SOH) is selected to be put into the energy storage bank for priority output. In addition, based on the state of charge (SOC) distribution of the retired batteries, droop coefficient of DC/DC converter is adjusted. Therefore, the SoH optimization and SOC consistency between energy storage banks can be realized. The effectiveness of the proposed coordinated control method is verified by the simulation experiments of three retired battery-based energy storage banks in DC distribution network.