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A Second Life for EV Batteries: The Future of Stationary Energy Storage

 

The electric vehicle (EV) battery supply chain that has evolved over the past 20 years will not be the same one that guides us through the next two decades. As demand for EVs continues to soar, fundamental changes are essential to address the sustainable challenges associated with producing EV batteries.

 

With the global rise in electric vehicles, a new opportunity is emerging for the power sector: stationary storage powered by remanufactured (or sustainable) EV batteries.

 

What is Stationary Storage?

Stationary storage refers to systems that store energy for later use, such as balancing the grid during peak demand or providing backup power during outages. These systems are increasingly seen as crucial for a sustainable energy future, and they may soon be powered by remanufactured EV batteries.

 

Sparking a Second Life

Over time, lithium-ion batteries degrade and are typically designed to last about a decade in an EV. However, once they no longer meet the performance standards required for EVs, these batteries can still have a second life.

Even after their primary use in vehicles, these batteries retain around 80% of their total usable capacity. This residual capacity makes them ideal for less demanding applications, such as peak shaving, grid demand response, power factor control, micro-grid formation, renewable EV charging, etc.

 

The Future of Used EV Batteries

When an EV battery reaches the end of its first life, manufacturers have three main options: reuse, recycling or disposal.

 

1. Reuse: This is where the concept of a "second life" for EV batteries comes into play. After being remanufactured, used EV batteries can be repurposed for stationary energy storage, providing a sustainable and economically viable solution for the energy sector.
2. Recycling: This option can be appealing, especially if the battery contains valuable metals like cobalt and nickel. With the expected tight supply of these metals in the coming years, recycling could become increasingly important.
3. Disposal:This is often the last resort and usually occurs if the battery pack is damaged. In many regions, regulations prevent mass disposal due to environmental concerns.

 

The transition to a more sustainable EV battery supply chain is not just about meeting the growing demand for electric vehicles. It's also about reimagining the lifecycle of these batteries and unlocking their full potential, even after they've reached the end of their first life. As we look to the future, stationary storage powered by used EV batteries could play a pivotal role in the global energy landscape.