Capacity of Lithium Ion Batteries for Plug-In Electric Vehicle Second-Life Stationary Energy Storage is Expected to Grow 10 GWh From 2022 to 2035, According to Navigant Research
A recent 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.
Li-ion battery packs in EVs have shown less degradation and better performance than expected thanks to robust pack design and careful thermal and charging management. Although the specific power and energy capacity performance parameters for second-life reuse will need to be determined, these batteries will likely have high power and energy capacities, making them well-suited for grid storage applications such as frequency regulation as well as longer duration applications. Click to tweet: According to a recent report from @NavigantRSRCH, capacity of Li-ion batteries for PEV second-life stationary energy storage is expected to grow 10 GWh from 2022 to 2035.
“The release of the Chevrolet Volt and Nissan LEAF in 2010 ushered in the modern era of mainstream vehicle electrification,” says William Tokash, senior research analyst with Navigant Research. “PEVs that use traction batteries with Li-ion chemistries are now available globally, and many of these batteries show less degradation and better performance than expected and may have value after their vehicle life is over.”
The regional distribution of second-life batteries will be relatively proportional between Asia Pacific, Europe, and North America, according to the report. The low cost and heavy weight of these batteries will likely preclude intercontinental shipping, so most batteries employed in stationary ESS reuse applications will be in close vicinity to where they are removed from vehicles.
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.