Annual Capacity of Lithium Ion Batteries for Plug-in Electric Vehicle Second-Life Stationary Energy Storage is Expected to Reach 11 GWh by 2035, According to Navigant Research
A new report from Navigant Research explores the concept of reusing plug-in electric vehicle (PEV) lithium ion (Li-ion) batteries for stationary energy storage system (ESS) applications, focusing on the key issues, market drivers, and challenges related to reusing second-life PEV batteries.Many traction batteries with Li-ion chemistries used in PEVs are showing less degradation and better performance than initially expected. This is sparking the interest of stationary ESS stakeholders, who believe these batteries may hold value beyond the life of the vehicle. Click to tweet: According to a new report from @NavigantRSRCH, annual global capacity of PEV Li-ion batteries available for second-life stationary ESS applications is expected to reach 11 GWh by 2035.
“Now that we’ve entered into the modern era of mainstream vehicle electrification, today’s question is what will happen to PEV Li-ion that have exhausted their vehicle life, but still have capable batteries,” says William Tokash, senior research analyst with Navigant Research. “The potential reuse of these batteries is of keen interest to both stationary ESS developers looking to reduce costs and automotive original equipment manufacturers (OEMs) interested in new revenue models that capitalize on the residual asset value.”
Reusing end-of-vehicle life PEV Li-ion batteries for stationary energy storage applications could solve the problem of new batteries being too expensive in the mid-term, according to the report. This is because used but capable batteries are likely to be sold at a low price while still capable of providing a useful function.
The report, Alternative Revenue Models for Advanced Batteries, explores the concept of reusing PEV Li-ion batteries for stationary ESS applications. The study examines the issues, including market drivers and challenges, related to second-life batteries and suggests moves for stakeholders to help make the concept become a reality. Global forecasts for the availability and capacity of these batteries, as well as their future price ceilings, are provided. The report also assesses the residual energy storage asset value and alternative revenue streams associated with the reuse of PEV Li-ion batteries.