A United Kingdom company is promising to remake the electric vehicle and battery storage industries with a game-changing strategy.
Connected Energy, founded in 2013 and based in Newcastle upon Tyne, said it could increase the residual value of EVs and decrease the need for new battery production by repurposing the vehicle power sources as energy storage systems. It could "support EV charging hubs and microgrids or capturing excess solar for decarbonization goals," The Energyst reported.
The outlet noted that EV batteries remain 80% effective at the end of their life cycles and that lithium-ion battery recycling is cost-prohibitive and energy-intensive. EV resale values have also nosedived 50% over the last two years, according to the British Vehicle Rental and Leasing Association.
"Residual value is the benchmark for pricing a vehicle at the end of its lease term," The Energyst stated. "Strong residual values are important for sustaining the financial health of the leasing market."
So, Connected Energy hopes to move those EV batteries to stationary energy storage platforms.
"Giving former EV batteries a second life as energy storage can unlock additional value," Chief Operating Officer Alex Charr said. "New commercial models are now emerging to enable financial returns for EV battery owners. This could substantially improve residual values for EVs and accelerate the transition to all-electric vehicles."
This would help reduce the production of planet-warming pollution, much of which comes from the toxic exhaust spewed by personal, commercial, and industrial vehicles that rely on gasoline or diesel fuel. In the U.K., transportation is the largest source of heat-trapping gases, accounting for 26% of total emissions in 2021.
Connected Energy, with a technical center in Hethel, Norfolk, operates internationally and is pushing to disrupt the throwaway economy with circular solutions. Its partners include Volvo and Caterpillar.
Charr said company data shows each used EV battery could generate thousands of euros in revenue. This would help battery manufacturers, which would not have to produce as many batteries and solve a recycling dilemma. In Europe, it costs hundreds of euros to recycle one EV battery, per The Energyst.
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Cost 💰 Charr noted this would also allow the battery recycling industry to mature and reduce costs.
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"We now know that the same principles apply at scale, enabling large-scale opportunities for energy storage developments, which support the grid on a network level," Charr told the publication.
"By monetizing second-life batteries, leasing companies and OEMs [original equipment manufacturers] can introduce an additional revenue stream, directly boosting the intrinsic value of a used EV. This not only addresses the issue of falling RVs [residual values] but also enhances the overall sustainability of the global EV industry."
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