EV Batteries For Energy Storage
One way to reuse EV batteries for energy storage is to disassemble them, evaluate their health, and reassemble them with safety equipment and controls. It’s also possible to repurpose multiple used batteries. The batteries need to be evaluated first to determine their value. The more degraded cells they have, the more expensive the software needed to regulate them. In some cases, the cost of repurposing EV batteries is more than twice what the battery was originally purchased for.
Second-life battery supplies for stationary applications are expected to reach 200 gigawatt-hours per year by 2030. That’s far more than the current demand for lithium-ion utility-scale storage for low- and high-cycle applications. By 2030, the market is expected to be worth at least $30 billion. However, there are several challenges to overcome before the market can take advantage of this supply.
One of the biggest obstacles is the scarcity of second-life EV batteries. There are plenty of second-life EV batteries lying around in garages. Some automakers only recycle used EV batteries for warranty claims. Even insurance companies don’t have the money to repurpose these batteries. In such cases, the batteries are a valuable resource, as they still hold 70 percent of their energy capacity.
Another hurdle to overcome is the high cost of second-life EV batteries. The cost of reusing an EV battery pack could be as low as $20 per kWh, according to the National Renewable Energy Laboratory. The resold battery systems could sell for $60 to $175 per kWh, which is still competitive with the costs of new EV batteries. However, it’s unlikely that this would be attractive enough to make them attractive for bulk sales.
Repurposing Used EV Batteries For Energy Storage
Repurposing used EV batteries for second-life purposes is an excellent idea for many reasons. Not only does it create jobs, but it helps the environment. Repurposing EV batteries for energy storage means that EV battery packs will be used again in factories that make batteries. In fact, this kind of re-use will result in a substantial reduction of pollution in the atmosphere.
The cost of reusing EV batteries is largely dependent on how efficient the recycling process is. For instance, if the battery packs are in good shape, they will last up to four years. This would help the environment in many ways, since it would reduce the need for new EV batteries. The costs of reusing second-life EV batteries are less expensive than EVs, but the price is still competitive enough that repurposing them makes sense for both companies.
The cost of reusing EV batteries is also a significant issue. They are considered hazardous waste and are not recyclable, but a number of automakers are working to find ways to recycle them. BMW is one of the most aggressive companies repurposing used EV batteries in a pilot in 2015, and has plans to install 50 Leaf battery packs in the United Kingdom by 2020. These are great steps forward for the environment, but they should be supported by governments as well.