- Battery energy storage specialists, Connected Energy, have published a new white paper, called ‘Powering a Circular Economy, One Battery at a Time’’.
- This white paper explores the importance of repurposing second life EV batteries to reduce our global reliance on critical minerals.
- It covers the technicalities, safety, benefits, and economic potential of repurposing EV batteries for energy storage. Download the full paper, here.
Introduction
The global EV market is set for significant growth in the coming years, with annual sales of EVs forecast to reach 18.84 million units by 2029, according to Statista. Meanwhile, the global energy storage market is set to grow a significant 21% year-on-year, up until 2030. Thanks to existing growth in each of these industries, both EVs and battery storage have now become the largest global users of lithium, with the two aspects combined constituting 30% of global demand for the critical material.
This is a growing concern, which explains why the European Union is set to introduce battery passport legislation in 2027. Under these regulations, all EVs, and industrial batteries with a capacity above 2kW, will need to carry a battery passport that improves traceability – and this legislation sets a footprint that other non-EU countries may decide to follow.
An EV battery typically has 75-80% of its remaining capacity, at the point that the vehicle as a whole reaches the end of its life. This opens up a significant opportunity for OEMs to repurpose these batteries, from both sustainability, revenue, and legislative perspectives.
The aforementioned growth of the battery energy storage system industry further highlights this opportunity, with an increasing number of EV batteries coming to the end of their life. According to research by McKinsey, by 2025, 800 million tonnes worth of EV batteries will reach the end of their first life. A significant proportion of those will still be suitable for reuse in the energy storage segment.
This is where players in the second-life battery industry, such as Connected Energy, are hoping to make a difference – as outlined in Connected Energy’s new white paper.
Connected Energy has already worked with a number of OEMs to repurpose end-of-life EV batteries. For example, its ongoing collaboration with Renault Group’s Mobilize has repurposed over 700 end-of-life batteries from Renault Kangoo ZE vans, which were turned into stationary energy storage solutions. Its current APC project with Nissan is investigating the whole life cycle of EV batteries. Additionally, the firm recently signed a letter of intent with Volvo Energy to codevelop battery energy systems. That’s a strategic move, considering that battery health of existing Volvo EVs, helping verify their second-life viability, is already closely monitored.
Matthew Lumsden, CEO of Connected Energy, commented:
“Automotive OEMs have started to recognise the value of second life batteries – especially now as they are seeing a large amount of batteries due to come to the end of their first life in the next five years. Battery energy storage gives them the opportunity to get the maximum value – both financial and environmental – out of them, before they move to recycling.”
The white paper highlights the role EV battery repurposing can play in fostering circular economies, and the benefits this can bring to not just businesses but wider society. The most obvious environmental benefit comes from recycling and repurposing end-of-life EV batteries, reducing the need for environmentally-damaging lithium extraction and disposal.
Additionally, as lithium is one of several critical materials, with finite supply, repurposing will help reduce resource scarcity. This circular idea could also help reduce reliance on imported critical materials, helping reduce outside reliance in a volatile world.
The complete Connected Energy white paper, which gives full information on the topic, along with a significant number of detailed policy recommendations, can be downloaded below. This contains not only a UK-specific perspective, but a wider global picture for implementing EV battery repurposing.
Download the full Connected Energy White Paper, here.
Find out more about Connected Energy’s work, here: www.connected-energy.co.uk
This article is a sponsored piece of content for Connected Energy. If you would like to discuss partnership opportunities with ElectricDrives, please email Theo Binns today: theo.binns@green.tv.