As the first generation of electric vehicles approaches end-of-life—the EV industry will have millions of used batteries to repurpose and recycle within the next few years. While they are no longer fit for the power demands of EVs, what’s clear is that about 80% of their usable capacity remains ready for deployment. According to experts,  these batteries can hold enough energy for a decade of continued use.
Meanwhile, increasing interest in stationary energy storage systems will require more batteries and critical raw materials. Demand for graphite, lithium, and cobalt may rise by nearly 500% by 2050. Most of the available raw lithium is allocated for EV batteries, reducing the supply for stationary battery applications. Relying on new batteries alone will not satisfy market needs nor make progress on creating a greener future.
Reusing EV batteries in battery energy storage systems (BESS) offers a sustainable, cost-effective path for businesses to reduce electric bills while ensuring reliable power.

Understanding Second-Life Batteries

Second-life batteries refer to new, stationary use of out-of-service automotive batteries. Battery cells are made of degradable materials, so recycling them is inevitable. Repurposing battery packs into second-life energy storage systems can maximize their value and environmental benefits.
To prepare EV batteries for another application, cells and modules must be evaluated and refurbished. Battery management systems are also remanufactured to ensure efficient and safe control in a variety of new uses.
 

Second-Life Battery Processing and Potential Applications

 

Use Cases

Second-life batteries have many use cases. They can provide front-of-the-meter, utility-scale services for frequency regulation, voltage support, and renewable energy storage, as well as backup services for telecommunications and data centers. EV batteries can even be reused in low-power electric vehicles like golf carts and forklifts.
Behind-the-meter storage services are another enticing application of second-life EV batteries for backup power and stationary storage systems. With rising electricity prices and more frequent outages, businesses are looking to take control of their energy. Installing a battery energy storage system (BESS) allows offices, retailers, hospitals, and others to store power for use when the grid goes down. They can also charge when utility prices are low and discharge to use that energy during peak demand. This provides reliable power and a way for companies and organizations to reduce energy demand and operating expenses. Adding an onsite solar system can help businesses further decrease costs and enhance sustainability with cleaner, cheaper power.
Increased EV adoption will require a robust charging network. Second-life batteries can also be valuable to charging station operators who can rely on a BESS to maintain charging station uptime while providing affordable rates for drivers. 
However, commercial EV fleets may stand to benefit most from second-life batteries. They have a unique opportunity to reuse their own fleet batteries in their charging station BESS. EV fleets regularly cycle through vehicles, leading to a steady supply of used batteries that they are required to properly recycle or discard. Considering these batteries still retain significant capacity, fleets can repurpose them for their own BESS applications. Doing so not only extends the batteries’ useful life but also avoids the need to purchase new batteries for energy storage, lowering costs. Fleets with predictable driving and refueling patterns are an ideal fit for second-life batteries. They typically operate between eight and ten hours a day, leaving enough time to charge the BESS when prices are low and discharge when prices are high for significant energy savings.

Advancing Technology Increases Value

Second-life batteries are not without challenges. For example, variations in battery manufacturer, chemistry, and state of health can affect battery performance. When battery cells are combined into modules, and modules are joined together, the weakest cells can drag down the usable capacity of the entire pack. However, new technology is helping to overcome such issues to optimize integration and performance and maximize overall battery lifetime. Advancements in generating more energy per cycle can reduce BESS cost-per-kilowatt-hour by as much as 60%, cutting capital expenditure cost by half.
With opportunities to maximize return on investment and reduce environmental impacts, second-life batteries will become an increasingly exciting opportunity for those making the transition to affordable, clean electricity.

Vadim Kaplan is responsible for managing the development and integration of intricate energy storage systems using second-life EV batteries. He holds a B.Sc. in Electrical and Electronics Engineering and brings forth an extensive background in geothermal power plant design and energy storage technology. He is passionate about creating innovative and sustainable solutions in the evolving energy landscape.

The content & opinions in this article are the author’s and do not necessarily represent the views of AltEnergyMag

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