Global electric vehicle sales are soaring.
This week will mark the 4 millionth passenger EV that will be sold, according to Bloomberg New Energy Finance, and the time needed to reach each consecutive million has shrunk from 17 months for the second million, to 6 months for the fourth million.
With this rapid growth, interest is being sparked in second-life EV battery use cases and the potential to bring tremendous value to a wide range of stakeholders across the automotive and energy sectors, as well as to society and environment, by giving ‘retired but still capable batteries’ a second life in less demanding applications such as stationary energy storage (an example of this is the 2.8 MWh storage system, recently installed at the Johan Cruijff ArenA in Amsterdam, combining power conversion units provided by Eaton, and the equivalent of 148 new and second life Nissan LEAF batteries)
The first batch of batteries of electric vehicles is reaching their retirement age and the next ten years will see a huge increase in the volume of retired batteries: by 2029, there will be around 3 million used battery packs coming out of electric vehicles per year which represents around 108GWh available storage capacity.
In October last year, BloombergNEF said in another report that the global storage market will reach 305 GWh by 2030. As such, second-life EV batteries could account for one-third of storage installations. According to research search group Circular Energy Storage in the article below, the market for battery recycling is expected to grow to $3.5 billion, and the market for second-life batteries could reach $4.2 billion by 2025.
For the Hyperion team this is music to our ears as we specialize in energy storage and eMobility executive search, partnering with the most innovative companies out there to navigate this fascinating industry and working with the best candidates to support their career development.
A range of car manufacturers have announced cooperation with battery storage plant operators for the supply of second-life EV batteries. As the batteries often retain 60% of their original capacity, they are in good enough shape for frequency response, as discharging cycles for this type of energy usually extend to just a few minutes and rarely reach an hour or more.